3 Reasons Why Chainlink Price Could Rally to $100

As analysts have noted, the Chainlink (LINK) price potential is way above the prediction of $100. Most institutions use the oracle to bridge traditional finance (TradFi) into decentralized finance (DeFi), indicating that Chainlink adoption is rising. Swift and JP Morgan are big firms building on the blockchain.

The price of Chainlink declined by 4% on the day, trading at $23.48 when writing. Despite this drop, the targets for LINK are in the region of $100 long-term, bearing its traction with institutions. Similarly, its technology favored a more innovative environment.

The Fed also gave a reason for the altcoin to continue trending higher as the last quarter of the year approached. The decision to lower rates by 25 bps could have the crypto markets rallying. However, whether LINK could hit the $100 target in the long term remained.

Chainlink Price Eyes $100: When?

To begin with, Chainlink price action was on the verge of a breakout from a long-term consolidation that lasted about 45 months. The price action was confined within a massive cup-and-handle pattern on the weekly timeframe, and it was approaching a breakout.

The $125 target represents an increase of about 520% from the breakout level of $24, which LINK has frequently averaged this year. In terms of momentum, the price of LINK was one of the best among L1s and the broader market, including Bitcoin (BTC). In Q3, Chainlink’s price was up by 65%, with about a week and a half ahead. This was its strongest quarterly performance since the 2021 altcoin season rally.

The fast-moving 25 SMA had also crossed above the 50 SMA on the monthly timeframe, as Crypto Proselyte noted on CoinMarketCap. While the $100 target odds increased, the journey to it was not straightforward.

Additionally, the Market Periodical analysis on TradingView noted bullish momentum from the MACD indicator. An added reason to stay optimistic about the target while taking note of the inherent risks in cryptocurrencies due to volatility.

Still, there were two other reasons why this prediction was possible in the long term. Chainlink balance on exchanges was reducing, which, for one reason, maybe two or more.

Whales Bet Big, Eye Chainlink Price Rally

As reported by analyst Ali Charts on X, big players in the game accumulated nearly 2 million LINK tokens in only two days. About $48 million in capital flowed into the cryptocurrency.

Simultaneously, some whales profited after purchasing LINK when its price dipped below $10. That explained why the altcoin price was down on the day, despite this capital inflow.

Whale activity alone cannot confirm a rally for LINK but adds weight to the prediction. Continued accumulation would breed confidence in price appreciation, while the reverse would ignite a sell-off.

Chainlink Reserves Dip: Supply Shock?

More chain analysis, as reported by Coin Bureau on X (formerly Twitter), further improved the odds that the community believed the price was going higher. Naturally, when exchange reserves reduce, it signals accumulation as traders move them to cold wallets.

Institutions are now scrambling for Chainlink tokens. Adoption in Real World Assets (RWA) tokenization and oracle market dominance of Chainlink strengthened its bullish case. As a result of such an acquisition, LINK balances on all exchanges hit the lowest level since 2022. The decrease indicated an upcoming supply squeeze that could push the prices towards the predicted target.

In summary, these on-chain metrics together with the price pattern in play suggested LINK could hit $100, but the timeline was not defined. Still, it would be characterized by alternating accumulation and distribution phases.