Chainlink has demonstrated remarkable resilience in the face of challenging circumstances. When considering the monthly performance, Bitcoin has seen a modest increase of 1.7%, while Ethereum has experienced a slight decline of 1.6%. Meanwhile, other alternative cryptocurrencies like Solana, Cardano, MATIC, and XRP have all witnessed decreases in their values ranging from 3% to 8%. In striking contrast, Chainlink has surged by an impressive 33% during the same period. Notably, this surge has completely offset the 22% loss recorded in the previous month. Looking back at the third quarter, Chainlink has recorded a substantial 24% increase in value.
Furthermore, this upward trajectory has propelled Chainlink to climb higher in the rankings chart. In fact, it has recently surpassed Shiba Inu in terms of its market position. At the time of this report, SHIB was ranked 19th among assets, while LINK held the 17th position. The transition in market capitalization rankings has only just occurred in the past few hours, as depicted below.
Chainlink’s Prospects in Q4
In the weekly timeframe, Chainlink (LINK) has shown a bullish reversal, breaking free from the downtrend that had been established in 2021. Consequently, analysts like ‘Rekt Capital’ have started to question whether the broader downtrend may be coming to an end once and for all. Additionally, experts like Michaël van de Poppe have noted that LINK seems to be gradually moving towards its higher price range. So, does this suggest that Chainlink is poised to conclude 2023 on a positive note? It’s crucial to emphasize that Chainlink is currently at a pivotal juncture across all macro timeframes.
In 2021, the cryptocurrency gathered liquidity within the price range of $6.8 to $11.2 for several months before embarking on an impressive 370% rally. Over recent months, Chainlink has arguably been following a similar pattern, although there has been a lack of strong conviction among buyers. However, with the shift in narrative witnessed in Q3, there is potential for improvement in the coming period. Presently, LINK is only 12.3% away from reaching its 2023 high of $8.7. If the same positive momentum continues, it seems to be just a matter of time before the asset reaches a new annual peak.
Taking a long-term perspective, it is essential for Chainlink to transform its quarterly resistance levels into support within the next few weeks. This transformation would enable the market’s momentum to propel the asset above the $10 range, a level that has proven elusive in 2023.