Reasons behind the recent price breakout of Chainlink (LINK), can it rise?

LINK, the native cryptocurrency of the Ethereum-based decentralized blockchain oracle network, Chainlink, has witnessed a price breakout driven by strong on-chain activity and rising investor confidence.

An analysis by blockchain intelligence platform Santiment revealed that LINK’s technical indicators suggest that there is potential for continued price gains and that the long-term outlook for the asset remains positive.

Positive sentiment around Chainlink

According to Santiment, the Chainlink community considers the network a fundamental player in the altcoin market due to its decentralized oracle technology. Community members see the project as one that could drive innovation in the blockchain space and bridge the gap between on-chain smart contracts and off-chain data sources. As a result, the social media narrative surrounding LINK’s potential is enthusiastic.

“Whether or not it will fully meet these high expectations remains to be seen, but community confidence in the project continues to play a large role in its market presence,” Santiment said.

LINK currently ranks 14th on the list of top crypto assets by market capitalization. Over the past few days, the cryptocurrency has gained 10.2%, driven by the growing accumulation of whales and large investors.

Risks and more upside potential

Whale transaction counts for transactions worth $100,000, $1 million and above have been increasing, highlighting the interest of high net worth individuals and institutional investors in Chainlink. On-chain data shows that holders with massive amounts of LINK have been aggressively hoarding the token in recent weeks.

As of August 15th, wallets with a million or more LINKs collectively held 685.5 million of the token. However, his stash had grown to 694 million at the time of writing, indicating an addition of 8.5 million coins in roughly six weeks. Santiment said the growth is one of the fastest jumps in whale coin accumulation in three years.

Additionally, Chainlink has recorded a significant performance against Bitcoin, with LINK outperforming the leading crypto asset by 8.8% during its latest surge.

Interestingly, Chainlink’s short-term and long-term market-to-realized value ratios are currently in negative territory, indicating that LINK still has more upside potential and that there is still plenty of room for the asset to grow.

However, Santiment cautioned investors to exercise caution as LINK could slide into slightly risky territory while posting average short-term returns.

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