Chainlink's back: LINK up 44% as traders eye ‘round 2’ rally

Chainlink may be setting up for another aggressive rally, according to traders, after recording a 44% gain in the past week

“LINK looking like it’s ready for round 2,” crypto trader Johnny, who has over 860,000 followers on X, said in a post on Wednesday, pointing to a bullish setup this week after hitting $24.60.

“Most obvious large-cap play,” says trader

Santiment said it is the “highest level of bullishness” Chainlink (LINK) has seen since Feb. 1, over six months ago. Chainlink has also been up 54% over the past 30 days, trading at $24.0 at the time of publication, according to CoinMarketCap data

Ether is up 57% over the past 30 days. Source: CoinMarketCapAnother 6.2% increase to $25.50 would put approximately $61 million in short positions at risk of liquidation, according to CoinGlass data.

However, despite its recent rally, Chainlink remains 55% below its May 2021 all-time high of $52.88

It is among several top 20 cryptocurrencies — such as Stellar (XLM), Hedera (HBAR), and Litecoin (LTC) — that have yet to reclaim their 2021 all-time highs

Analysts have previously said that many traders may be waiting for popular coins from 2021 to revisit all-time high levels before selling at breakeven.

However, some analysts suggest it may go much higher. Crypto trader Miles Deutscher said, “LINK might be the most obvious large-cap play for this cycle,” adding that “most people will miss it.”

Developments for Chainlink in recent times

Deutscher said this is because Chainlink is the “winner from the institutionalisation of crypto and the explosive growth of stablecoins, tokenisation, and RWAs.”

On Monday, Chainlink partnered with the US-based Fortune 500 company Intercontinental Exchange (ICE) to bring foreign exchange and precious metals data onchain

Related: Blockchain compliance tools can slash TradFi costs: Chainlink co-founder

Chainlink co-founder Sergey Nazarov said on May 15 that asset tokenization is set to accelerate the movement of capital across traditional markets and will boost capital velocity in asset classes such as treasuries, equities, private credit, commercial debt, and real estate.

Crypto commentator Rick Barber said in an X post, “All eyes and interest regarding $LINK is on the expectation of a deposit and update this week to the newly created Reserve.”

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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