- Timothy Peterson of Cane Island Alternative Advisors has postulated that ChainLink (LINK) can go as high as $32 by the end of 2020.
- However, he warns that such a move by LINK would not be sustainable.
- Furthermore, buying at such levels could result in investors of LINK losing 50% of their investment or more.
Over the past few weeks, ChainLink (LINK) has proven to be the proverbial fastest horse in the crypto markets. LINK seems to be setting a new all-time high value every 24 hours with its current one being $14.46 set only yesterday, August 9th.
ChainLink Could Hit $32 but it Would Be Risky
It is with this brief background that Timothy Peterson of Cane Island Alternative Investors, has highlighted the possibility of LINK hitting $32 by the end of the year.
However, Mr. Peterson has also warned that such a parabolic move up would not be sustainable. He added that investors who would be lured to buying LINK at such levels, risk losing 50% of their investment or even more.
Mr. Peterson’s exact statement was as follows.
Did some quick analysis of #chainlink‘s network growth rate and historical deviations in price put
$LINK at $32 by end of year, but that price would not be sustainable.
Investors who buy at high levels risk losing 50% of their investment or more. Most growth priced in already.
Mr. Peterson’s Spot-on Analyses of Bitcoin and ChainLink
Mr. Peterson has on more than one occasion, hit the nail on the head with his analysis of ChainLink and Bitcoin.
Firstly, and in early July, his modeling of LINK’s price using Metcalfe’s law had estimated an $8 value of ChainLink by August. Checking the charts, LINK has since exceeded this value and almost doubled it at its current price of $13.45 – Binance rate.
Secondly, Mr. Peterson had also used his Metcalfe’s model to predict that Bitcoin would hit $10k before mid-August. Checking the charts once again reveals that Bitcoin has overshot his estimates by a cool $2,000.
Thirdly, and in mid-July, he had predicted that ChainLink would eclipse Bitcoin SV (BSV) and Bitcoin Cash (BCH) in terms of market capitalization. Taking a brief look at Coinmarketcap reveals that LINK has surpassed BSV and claimed the number 6 spot. Mr. Peterson has since updated his comments regarding LINK flippening BCH as seen in the following Tweet.
Obviously I’ve put my money where my mouth is. I see it’s rightly displaced BSV and BCH should be next in the short term. After that may take some more time to move up.
— Timothy Peterson (@nsquaredcrypto) August 9, 2020
Approximately $533 Million in market cap separates LINK from Bitcoin Cash. This means that LINK needs only be valued above $16.169 to take the number 5 spot from Bitcoin Cash.