Is It Time for Chainlink (LINK) to Retract or Is There Still A Lot to Fuel This Fire
The 12th largest cryptocurrency by market cap has been hitting new all-time highs almost every day this week. The new peak is $6.53, and currently, Chainlink is 5% off of this trading at $6.17.
Chainlink has been enjoying a winning streak for five months straight from February to June, and now it’s working on adding another one to it.
“With BTC stable, prices have been given free rein to skyrocket, and unique tokens circulating have just continued on this trajectory upward over time along with LINK's market value,” states Santiment in its report. But “the only thing stopping it is its MVRV long/short diff.”
What’s the Force Behind it?
The massive rally is not only driven by FOMO but also because of Chainlink’’s increased usage in the decentralized finance (DeFi) space. Most of the ecosystem depends on this application for off-chain data feeds.
Another factor behind the rally is the new partnerships that Chainlink keeps on forming — about two new alliances are being announced by the company every week for the past two months now.
This week, Chainlink partnered with the regulated crypto-backed credit line service Nexo which secures over $600 million in user funds.
Staking will only make the token more attractive to investors. Currently, it isn’t live but involves “running a Chainlink node or joining a Chainlink staking pool in order to connect blockchains to off-chain data and being paid in LINK for doing so.”
Is this Rally coming to an End?
There are several factors behind Chainlink that could see it further driving forward. But Santiment is “only barely bullish short-term after such a large upswing.”
— Josh Rager 📈 (@Josh_Rager) July 9, 2020
This is because, daily active addresses versus Price Divergence that has been a pretty reliable pattern for the price movement, though it still sees green bars, they are low and below the “bullish” trendline.
On the other hand, even the abundance of non-believers can fuel this fire, which they have had since early May. There is a “heavy doubt that this rally can continue,” as such, “this is a good sign that the rally can continue.”
According to trader Cole Garner, “It's just getting started,” and “a full-blown parabolic advance” is on its way.
Link’s balance on the exchange that has been on a downtrend for the past year only sees a small jump, which may mean there’s still “plenty of room to grow” and for the current price level to be the top, “on-chain volume needs to spike much higher.”