Benjamin Cowen, a popular crypto analyst, decentralized oracle network Chainlink (LINK) discussed future price targets towards 2022 for
Benjamin Cowen, in his new video published on his YouTube channel, stated that while the price of Chainlink increased 113% in 2021, his expectations are much higher for the real-world data provider.
“When we look at the year 2017, we see a start of around $0.12 and completed the year around $0.60. It has increased by about 5 times or something close to it. The following year saw a decrease of 53%, but has since managed to increase 521% in 2019 and 539% in 2020. In 2021, a modest 113% rate was actually achieved.”
The analyst says he still believes LINK will be able to generate 4x earnings next year.
“I think there is good luck going into 2022, I think LINK will break new all-time records. Personally, I wouldn’t be surprised if LINK hits $100 in 2022, which is nearly 4x higher than current prices.
I’m still very, very optimistic about Chainlink, but you can’t ignore the fact that it has underperformed many cryptocurrencies this year and over the past 18 months.”
Cowen studied the price of Chainlink against the leading smart contract platform Ethereum (ETH) and made a prediction. He stated the following about the LINK/ETH trading pair:
“If you look at the LINK/ETH assessment… you can see a drop of about 87% or 88% since August of 2020. This is a significant drop. LINK’s valuation against ETH will need to increase by about 700% to return to what it was in summer 2020.”
The charting guru says that the LINK/ETH breakout resistance could be the catalyst that sends Chainlink into its next rally.
“Since October or September 2020, we have been below the bull market support band and continue to be rejected repeatedly. If we break it, that could be a sign of a momentum shift for Chainlink and then potentially start another nice rally.”
Cowen concluded by looking at Chainlink in US dollars, but reiterated that he was adamant in his claim that LINK is the most important metric compared to ETH.
“I think the key areas to watch for LINK to see a reversal will, of course, be to see if LINK/USD valuation can break above its own bull market support band, which ranges from around $25 to $27.
But that’s not the more important part, “Can LINK/ETH valuation get in the way?” I think the question is much more important.
LINK is basically… a riskier asset than Ethereum, so it makes sense of course you want it to outperform Ethereum or at least be an oscillator. If all it does is fall, then you risk more for less reward.”
While writing, LINK It is trading at $20.79, down 14.59%.
The altcoin fell sharply last month, reaching $26.81, then falling to $17.61 and then briefly climbing back above $24.
Chainlink started the year under $12 and hit an all-time high of $52.70 in May, then dropped to $20.10 and ultimately $13.88 before tumbling back up in recent months.
In contrast, Ethereum saw a breakout year and rallied from the $730 high to the $3811 high.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.