Crypto analyst Benjamin Cowen thinks that the blockchain oracle Chainlink (LINK) is undervalued.
Cowen tells his 582,000 YouTube subscribers that the decentralized network’s native token, LINK, has been one of his top holdings for a long time. He predicts LINK will continue to trend up with time, though he notes it hasn’t been surging as well as other altcoins he follows.
Cowen says that’s because Chainlink follows a unique path compared to other crypto assets.
“Over time, LINK gains value. It almost seems to move different than the rest of the crypto asset class. I mean, how many assets were moving up during the bear market? Not very many.
How many assets put in a new all-time high [ATH] in 2019 above their 2017/2018 all-time highs? Not very many, not even Bitcoin [BTC] or Ethereum [ETH]. LINK also had a summer bubble back in August of 2020, and then it made a nice move into May of 2021.”
LINK is trading at $32.78 at time of writing, up 33.5% in the past month, according to CoinGecko. The 13th-ranked asset by market cap hit its all-time high of $52.70 in May.
Cowen says Chainlink is attempting to hold its bull market support band, which is a combination of LINK’s 20-week simple moving average (SMA) and 21-week exponential moving average (EMA).
The analyst says,
“If it holds, which I think there’s a decent chance [of], then maybe we’ll see a rally to new all-time highs.”
Cowen also notes that LINK/USD longs have surged recently.
“You might look at that and say, ‘Well, is that a bearish thing?’ The best thing I think to do is look to see what happened last time the longs skyrocketed.
The last time they went to these levels was back at the end of December and early January. At that phase, that’s what sort of kick-started LINK’s journey from maybe $10 up to about $55, so it was a 5x move.”
LINK was trading between $11-$12 on December 31st of last year.
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