- LINK lost 3.21% in value in just 24 hours
- Despite the price decline, market sentiment remained largely positive
In recent weeks, altcoins have declined significantly on the price charts. During the same period, LINK has seen a sustained consolidation phase. However, the altcoin has not been immune to periods of depreciation. In the last 24 hours alone, the cryptocurrency lost 3%. And yet, market sentiment remains consistently positive. Is there a reason for this?
What is the reason for LINK’s market optimism?
Amidst the market volatility, several developments have attempted to push LINK’s price action in a positive direction. First of all, Coinbase Derivatives has filed to list LINK regulated futures contracts with the CFTC. As expected, these reports have all been optimistic.
Another factor that plays a crucial role in changing the market sentiment is the speculation around LINK ETFs. According to Chainlink Red Pill, LINK ETFs could be on the horizon. He shared:
“The path to a $LINK ETF is being paved. Timing-wise, this could play out well. We want Tradfi to have an easy way to buy $LINK when Sergey starts to phase out the massive Chainlink usage for RWAs. It’s all coming together.”
These two developments have played a crucial role in shaping the market sentiment. More broadly, many in the community are also predicting higher price targets for LINK. Popular crypto analyst Swing Tony is one of those betting heavily on the altcoin. According to him,
“$LINK can realistically go to 0.0009 $BTC in this cycle. $75,000 BTC would take LINK above $67. $150,000 BTC would take LINK to $135.”
What do LINK’s fundamentals suggest?
AMBCrypto’s analysis of CryptoQuant found that the market was seeing some positive growth on the charts. In fact, LINK’s Exchange Supply Ratio saw a sustained decline from 0.161 to 0.159 in just a week.
A decrease in the supply ratio means that holders are moving assets to external wallets, indicating confidence in LINK’s future value. At the same time, it means less selling pressure driving prices higher.
Source: CryptoQuant
In addition, our analysis revealed that the Aroon Up line was above zero at 7.14%. Here, Aroon Up lines measure the strength of a trend and help understand when the price will reverse. 7.14% means that the prevailing trend is gaining strong momentum.
The Average Directional Index (ADX), which measures trend dynamics, also underlined a sustained upward trend.
Source: Tradingview
Finally, according to Santiment, exchange inflows have been declining over the past 7 days. In fact, they fell from a high of 209,000 to 71,138,000. This can be seen as a sign of a high accumulation rate and therefore reduced selling pressure.
Source: Santiment
What’s next for LINK?
At press time, LINK was trading at $13.83 after breaking the $13.624 mark. LINK will reach the next resistance level at around $14.52 if the positive market sentiment continues.
In a very bullish scenario, a breakout of this level will challenge the previously attempted level of $15.26. However, if a market correction occurs, the price will drop to the critical support level of around $13.54. Here, a further decline would push the price to the local support level of around $12.72.
