Summary:
- Timothy Peterson has forecasted that Chainlink will break $100 within 3 years
- Such a price movement would be an annual rate of return of 80%
- Chainlink’s supply is moving out of exchanges and could be the first confirmation of short term bullishness
- Bitcoin’s recent dip resulted in Chainlink dropping from $18.50 to $12.50 in 48 hours
- LINK could reclaim $16 in the ideal environment
Chainlink (LINK) is on track towards breaking $100 within three years. This is according to Timothy Peterson of Cane Island Advisors who forecasted that such a feat by Chainlink would be an annual rate of return of 80%. Mr. Peterson shared his analysis of Chainlink via the following tweet and accompanying chart, demonstrating the potential for LINK to grow in value based on his Metcalfe model.
#ChainLink is on track to break $100 within 3 years. That would be an annual ROR of +80%. pic.twitter.com/DtCpn7Y18D
— Timothy Peterson (@nsquaredcrypto) January 10, 2021
Chainlink’s Supply is Moving Out of Exchanges
With respect to the current token supply of Chainlink, the team at Santiment feed has observed that a lot of LINK is moving out of exchanges. Furthermore, Chainlink (LINK) is experiencing a good recovery after yesterday’s dip that saw its value drop to the $12.50 price area.
The team at Santiment highlighted the movement of LINK out of exchanges via the following statement and accompanying chart.
As altcoins have recovered to start the week, LINK looks to be a standout in terms of its ratio of supply moving encouragingly away from exchanges. When this ratio moves more toward offline, it’s an increasingly good sign of price upside.
What Next for ChainLink in the Crypto Markets?
As earlier mentioned, Chainlink is currently experiencing a good recovery after falling from $18.50 to the $12.50 price area. This dip by Chainlink by 33% was tied to Bitcoin falling from the $40k price area to the $31k support zone in the same time period.
At the time of writing, Chainlink is trading around the $15 support zone in what looks like consolidation for a push towards the $16 resistance zone.
As was seen with the dip to $12.50, Chainlink’s future in the crypto markets is very much tied to that of Bitcoin. Therefore, Bitcoin needs to either experience sideways or gradual movement in either direction for LINK to thrive. Any fast and furious moves by Bitcoin will definitely affect Chainlink’s bullish momentum.
