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Chainlink (LINK) has regained its bullish momentum amid mixed market sentiment, sparking discussions about its potential to surge towards $50.
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The recent uptick in LINK’s price comes despite bearish trends dominating the market, indicating a potential shift in investor confidence.
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According to an analyst from World Of Charts, “LINK remains within an optimistic range,” suggesting a bullish outlook moving forward.
Explore the recent bullish turn of Chainlink (LINK) and its potential path to $50, analyzing market sentiments and investor behaviors.
Chainlink Bulls Are Making a Comeback
Despite experiencing a 1.2% decrease over the past week, Chainlink saw a price recovery, with a rise exceeding 2.5% in the last 24 hours. This shift showcases the resilience of LINK bulls at a time when many assets in the crypto market are struggling.
At the current moment, Chainlink is valued at $21.73, boasting a market capitalization that exceeds $13.8 billion. The renewed interest in LINK has seen over 478,000 addresses now “in the money,” representing nearly 68% of all Chainlink wallets, according to data from IntoTheBlock.
However, this price surge has not been mirrored in the token’s social performance, as a substantial decrease was noted in LINK’s Weighted Sentiment. This metric indicates a growing wave of bearish sentiment, despite the recent price action.
Source: Santiment
Will LINK Reach $50?
A recent tweet from crypto analyst World Of Charts highlighted that LINK is trading within a range that could facilitate a potential leap towards $50. This optimistic projection aligns with other indicators suggesting a revival of buying interest.
Data points to an increase in buying pressure, demonstrated by a rise in LINK’s supply being held outside of exchanges, which correlates with a decrease in on-exchange supply.
Additionally, a significant spike in Chainlink’s exchange outflow on December 26th has offered further evidence of increased buying momentum in the market.
Source: Santiment
What’s Next for LINK?
Currently, the fear and greed index for Chainlink sits at a reading of 61%, indicating a prevailing sentiment of “greed.” Historical patterns suggest that such conditions can often precede price corrections.
However, technical indicators are painting a different picture. With LINK approaching the lower boundary of the Bollinger Bands, there exists a possibility of triggering a bull rally upon a breakout.
Investors are encouraged to use tools like the LINK Profit Calculator to assess the potential ROI based on current trends.
A sustained price climb could see LINK targeting the $29 mark again before eyeing the ambitious goal of $50.
Recent data from the Money Flow Index (MFI) also reflects a slight uptick after prior declines, indicating potential support for the asset’s movement towards the $29 milestone.
Source: TradingView
Conclusion
The recent price movements and market behaviors surrounding Chainlink underscore a complex narrative for investors. While the potential exists for LINK to surge towards $50, caution is warranted due to prevailing market sentiments and technical indicators suggesting short-term volatility. Ultimately, a closer examination of market metrics will guide investors’ next steps as they navigate the evolving landscape of cryptocurrency.
