In the past seven days, the price of Chainlink (LINK) has risen by 36.55%, raising the value of this Token to its highest level since January 2022. This growth coincides with a broader recovery of altcoins, with many cryptocurrencies erasing a large portion of the accumulated losses in recent months.
But that's not all. Based on this analysis, LINK may not have ended its price rally, with indicators suggesting higher values in the coming weeks.
Chainlink's Bearish Sentiment Is Not Entirely Bad News
The recent price increase of Chainlink has ensured that the altcoin is currently trading at $25. This milestone may be related to increased buying pressure, especially from 'whales' in the cryptocurrency space.
However, according to Santiment, retail investors have not yet joined the game, indicating that LINK still has room for further growth. One indicator proving this is the Considered Sentiment.
Sentiment Considered measures the broader market perception of a cryptocurrency. When this index is negative, it means that the average comments online about this asset are bearish. Conversely, when the index is positive, most comments are bullish.
Currently, Chainlink's Considered Sentiment is in the negative zone. This indicates that consumer fears of Missing Out (FOMO) have not yet reached the Token. Historically, when the price rises and sentiment remains bearish, the cryptocurrency has not yet peaked.
Chainlink's Considered Sentiment. Source: Santiment
Santiment, in a post on X today, also agreed with this view, stating that the little bullish expectation from the crowd is a good sign for LINK.
"The fact that there is very little FOMO from consumers is encouraging for LINK. The market moves contrary to the crowd's expectations, so the crowd's distrust only adds to this recovery momentum," the chain analysis platform emphasized.
Furthermore, TinTucBitcoin's assessment of Chainlink's Coin Holding Time index reveals a notable trend: the majority of LINK holders are refusing to sell their Tokens. Typically, a decrease in holding time indicates increased selling activity as more Coins are traded or sold.
However, in the case of LINK, this index has risen, indicating increasing investor confidence. This increase reflects significant bullish sentiment, suggesting that holders are choosing to retain their Tokens rather than sell.
If maintained, such sentiment often lays a solid foundation for potential future price increases.
Chainlink's Coin Holding Time. Source: Santiment
LINK Price Prediction: The Time for $30 to Appear
From an on-chain perspective, Chainlink's In/Out of Money Around Price (IOMAP) index shows that 79% of LINK holders are currently in profit. In addition to identifying profitable addresses, IOMAP also highlights important resistance and support levels based on Token volume.
Larger Token clusters at specific price ranges indicate stronger levels of support or resistance. According to data from IntoTheBlock, the volume of 'in profit' Tokens in the range of $22 to $25 outweighs the volume from $26 to $28. This indicates a strong support area that could help push LINK towards $30 in the short term.
Chainlink In/Out of Money Around Price. Source: IntoTheBlock
However, this bullish outlook depends on the sustained buying momentum. If selling pressure begins to outweigh buying activity, the price of Chainlink could fall below $20. But for now, the balance of probabilities leans towards a bullish rally for Chainlink.
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