- LINK depreciated by 3.21% in just 24 hours.
- Despite the fall in price, however, market sentiment remained largely positive.
- Popular analysts believe the altcoin has significant growth potential.
Explore the recent market dynamics of LINK, discover the optimism driving its value, and understand the challenges ahead in this comprehensive crypto update.
What’s driving LINK’s market optimism?
Amidst market volatility, various developments have tried to push LINK’s price action in a positive direction. For starters, Coinbase Derivatives recently filed to list LINK-regulated Futures contracts with the CFTC. Such regulatory developments are bolstering investor confidence significantly.
Another factor playing a crucial role in changing the market sentiment is the speculation around LINK ETFs. According to Chainlink Red Pill, LINK ETFs may be on the horizon. He shared,
“The road to a $LINK ETF is being put in place. Timing-wise, this could be shaping up well. We want Tradfi to have an easy path to buy $LINK when Sergey starts dropping massive Chainlink utilization for RWAs. It’s all coming together.”
These two developments have played a vital role in shaping the market’s sentiment. By extension, many in the community are also predicting higher price targets for LINK. Popular crypto analyst Swing Tony is among those betting big on the altcoin. According to him,
“$LINK can realistically go to 0.0009 $BTC this cycle. $75k BTC would put LINK over $67. $150k BTC would put LINK at $135.”
What do LINK’s fundamentals suggest?
Analysis from various sources reveals positive market signals. For instance, COINOTAG’s insights from CryptoQuant showcased a reduction in LINK’s exchange supply ratio from 0.161 to 0.159 over one week. This decline suggests that holders are moving their assets to external wallets, demonstrating confidence in LINK’s long-term value.
The Aroon Up line, which was recorded at 7.14%, indicates a growing trend momentum. The accompanying ADX (Average Directional Index) also underlined a sustained upward trend, adding to the positive sentiment.
Furthermore, data from Santiment reported a drop in exchange inflows over the past seven days, falling from 209k to 71.138k. This reduction in exchange inflows signifies a high accumulation rate and decreased selling pressure on LINK.
What next for LINK?
At the time of writing, LINK was trading at $13.83 after breaking out from $13.624. If the bullish sentiment continues, LINK’s value could climb to the next resistance level at approximately $14.52.
In an extremely bullish scenario, surpassing this resistance could see LINK challenge the $15.26 level. Conversely, if the market undergoes a correction, a fall back to the critical support level of around $13.54 is possible. A further decline could see LINK reaching the subsequent support level around $12.72.
Conclusion
In summary, despite recent depreciations, LINK has strong market fundamentals and bullish sentiment supporting its price performance. Investors remain optimistic due to progressive developments like potential LINK ETFs and new futures contracts. While LINK shows potential for upward movement, investors should remain cognizant of market corrections and support levels.
