LINK, the native token of the decentralized oracle network Chainlink, has seen a price breakout, fueled by strong on-chain activity and growing investor confidence.

According to the latest analysis from blockchain intelligence platform Santiment, technical indicators suggest that LINK has the potential to continue its bullish momentum, with the long-term outlook remaining very positive.

Santiment said the Chainlink community sees the network as a key player in the crypto market thanks to its prominent and market-leading decentralized oracle technology.

Community members believe that the project can drive innovation in the blockchain space and connect on-chain smart contracts with off-chain data sources. As a result, the social media narrative around LINK’s potential is always vibrant and optimistic.

“Whether Chainlink can fully meet these high expectations remains to be seen, but the community’s confidence in the project continues to play a key role in its market presence,” Santiment noted.

LINK is currently ranked 14th in the list of top crypto assets by market capitalization. Over the past few days, the coin has increased by 11.2%, fueled by increasing accumulation by whales and large investors.

Risks and growth potential

Whale transactions worth $100,000, $1 million, and more have increased, indicating interest in Chainlink from high-net-worth individuals and institutional investors. On-chain data shows that large LINK holders have been actively accumulating the token over the past few weeks.

As of August 15, wallets holding one million or more LINK held a total of 685.5 million tokens. However, that number has increased to 694 million at the time of writing, representing an addition of 8.5 million coins in just about six weeks. Santiment said this is one of the fastest jumps in whale coin accumulation in the past three years.

Additionally, Chainlink has recorded significant performance against Bitcoin, with LINK outperforming the leading crypto asset by 8.8% during its most recent rally.

Source: Santiment

Interestingly, Chainlink's short-term and long-term Market Value to Realized Value (MVRV) ratios are currently negative, suggesting that LINK still has a lot of growth potential and room to grow.

However, Santiment warns investors to be cautious as LINK could fall into a mild risk zone when recording short-term average returns.

Source: https://tapchibitcoin.io/ly-do-but-pha-gia-nhat-day-cua-chainlink-link-va-kha-nang-tang-tiep-theo.html