Investing in the crypto space is all about finding the right entry and exit positions. The right entry position is when the prices of a cryptocurrency are low, and the only way forward is for an uptrend. However, analysts also conduct various price analysis that shows when a coin has been overvalued and undervalued.
When a coin is undervalued, it usually presents a strong buy position because when the prices correct towards an uptrend, an investor will be in for major gains. One of the coins that analysts have stated is currently undervalued is Chainlink.
Chainlink is undervalued
Michael Van de Poppe, a renowned crypto trader and strategist, recently took to Twitter, stating that Chainlink is highly ‘undervalued’. While Poppe is popular with some of his predictions coming true, his recent stand on Link has been met with differing opinions.
— Michaël van de Poppe (@CryptoMichNL) September 25, 2021
Some of Poppe’s followers agreed that LINK is undervalued and that its price will pick up in the coming months. However, it is important to note that the tweet was a personal sentiment of Poppe regarding LINK. Crypto prices can move either way, and increased volatility could lead to the coin correcting towards the downside when investors expect it to correct towards an upside.
Chainlink is one of the most popular blockchains in the crypto sector. The blockchain functions as a decentralized oracle network that allows interoperability between different blockchains.
As mentioned, not everyone agreed with Poppe that Link was “very undervalued”, as he put it in his tweet. Some questioned him on the basis under which he had evaluated the coin’s value to come up with that sentiment. However, LINK’s supporters agreed with his tweet.
Going through the responses made to Poppe’s tweet, some users wondered why LINK’s prices are not affected by developments on its blockchain. Normally, when a blockchain gets a new use case or makes a strategic partnership, the value of its native token will spike with this news.
However, members of the crypto community have questioned why LINK fails to follow this trend, and its value does not make any significant gains despite having many partnerships. One of the recent partnerships that Chainlink has made is with the Cardano network.
Cardano is a popular network, and its recent launch of smart contracts has further increased its use cases. The network recently partnered with Chainlink, and LINK’s supporters are optimistic that this will positively affect prices.
In terms of popularity, Chainlink ranks highly. LINK has a market capitalization of more than $10 billion. However, the coin is not immune to the volatility experienced across the broader market, hence its slight dip of around 4% in the past 24 hours. The coin’s all-time high stands at around $52, achieved during the crypto market peak in May.
Some are still optimistic that the value of LINK could push even higher towards $200. While this is an achievable number, there is still much that the coin needs to move to such highs, including garnering overwhelming buyer support and strategic use cases for the blockchain.
Some LINK users also state that the coin’s popularity makes it deserving to be among the coveted top-10 cryptocurrencies. LINK currently ranks as the 15th largest cryptocurrency in terms of market capitalization, according to data from CoinMarketCap.
Will Link Bounce Back?
There is still the pending question of whether LINK will bounce to the highs that its supporters have predicted it will achieve. One user stated that he believes the coin could reach around $500 to $800 by 2024; there are discussions of whether these levels will be achieved.
One of the questions that investors have about LINK is why, despite being one of the oldest cryptocurrencies, it fails to rank highly compared to Cardano and Ethereum. The coin has been surpassed by new coins such as Dogecoin and Solana.
When the coin was launched in 2018, its developers had the objective of making it competitive with Bitcoin and Ethereum. However, looking at its current market cap and position in the crypto charts, it needs a major boost to move towards the top 10 coins.
However, it has not always been bad for Cardano because shortly after launch, the coin showed great promise and maintained a major uptrend for over one year before the rains started beating it, and its performance started lagging.
In terms of adoption, the most demanded innovation of this blockchain is the Chainlink price feeds that are useful to DeFi networks, as they give timely data results. The fastest blockchain networks such as Solana have adopted these price feeds, but the adoption has done little to LINK’s trading volumes.
However, it is still best practice to watch LINK’s price action because every coin has its season. LINK’s season could happen soon, in which case the highs that investors have predicted could be achieved. To learn more visit our Investing in Chainlink guide.