In the last seven days, the price of Chainlink (LINK) has surged by 36.55%, taking the token’s value to its highest level since January 2022. This surge coincides with a broader rally in altcoins that has seen many cryptocurrencies erase a significant portion of the losses accumulated over the past few months.
But that’s not all. Based on this analysis, LINK may not be done rising yet, as indicators point to a higher value in the coming weeks.
Negative Sentiment For Chainlink Isn’t Necessarily Bad News
Chainlink’s recent price surge has seen the altcoin now trade at $25. This achievement can be linked to increased buying pressure, especially from crypto whales.
However, according to Santiment, retail investors have yet to join the bandwagon, suggesting that LINK’s value still has room for further growth. One indicator that proves this is the weighted sentiment.
Weighted sentiment measures the broader market’s perception of the cryptocurrency. When the reading is negative, it means that the average online commentary about the asset is bearish. On the other hand, when the reading is positive, it means that most of the commentary is bullish.
Today, Chainlink’s weighted sentiment is in negative territory. This indicates that people’s fear of missing out (FOMO) has not yet hit the token. Historically, when prices rise and sentiment remains bearish, the cryptocurrency has not yet reached its peak.
Santiment, in a post on X earlier today, also agrees with this thesis, saying that the few bullish expectations from the crowd are a good sign for LINK.
“It’s encouraging that there’s very little fear of missing out on LINK. The markets are moving in the opposite direction of the crowd’s expectations, so not believing the crowd will only help fuel this rally further,” the on-chain analytics platform highlighted.
Furthermore, an assessment of Chainlink’s holding time metric reveals a notable trend: most LINK holders are refraining from selling 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, the metric has risen, indicating growing investor confidence. This rise reflects a marked bullish sentiment, suggesting that holders are choosing to hold their tokens rather than cashing them out.
If sustained, such a sentiment often lays a strong foundation for potential upward price momentum.
LINK Price Prediction: It's Time for $30
From an on-chain perspective, Bitcoin’s In/Out of Money Around Price (IOMAP) indicator shows that 79% of LINK holders are currently in profit. In addition to identifying profitable addresses, IOMAP highlights key resistance and support levels based on token volume.
Larger token clusters within specific price ranges indicate stronger support or resistance levels. According to IntoTheBlock data, the volume of “in-the-money” tokens between $22 and $25 outpaces the volume between $26 and $28. This indicates a strong support zone that could help push LINK towards $30 in the short term.
However, this bullish outlook is dependent on the continued buying momentum. If selling pressure starts to outweigh buying activity, Chainlink price could drop below the $20 mark. But for now, the balance of probabilities is leaning towards an increase in Chainlink price.