Altcoins
Chainlink Boosts Altcoin Market, Bulls Eye $20 Target
Chainlink (LINK), the blockchain’s leading oracle network, has been on a strong rally, outperforming the broader market with a 30% gain in the past week. The surge has pushed LINK’s price to $17.82, cementing its dominance among altcoins as bulls eye the much-vaunted $20 target.
Chainlink’s on-chain activity suggests renewed investor interest
Analysts point to several factors behind the surge. Santiment, an on-chain data provider, revealed an increase in activity from previously dormant wallets, suggesting renewed investor interest. This is reflected in the “Age Consumed” metric, which measures the total number of days coins were dormant before being moved. For Chainlink, this metric peaked at 5.38 billion — the highest ever recorded.
Whales are piling up, but culls are only a minor threat
Santiment’s data also indicated minor liquidations from some portfolios, a phenomenon often associated with fear or uncertainty. While these liquidations can trigger short-term volatility, they can also present buying opportunities for savvy investors. Additionally, reports suggest that whales are accumulating LINK, further fueling bullish sentiment.
The logic behind this outlook lies in the understanding that fear-driven selling could create temporary price declines, allowing savvy investors to acquire assets at more favorable prices.
Additionally, recent reports have indicated a trend of whales accumulating LINK, contributing to the overall bullish sentiment surrounding the cryptocurrency. Whale accumulation, where large holders increase their positions, is often interpreted as a sign of confidence in the asset’s future potential.
Chainlink currently trading at $17.94 on the daily chart: TradingView.com
Technical analysis paints a bullish picture
Crypto analyst Michael van de Poppe has identified a “higher low” on the LINK/BTC trading pair, which he sees as a bullish signal. He predicts a potential breakout, with LINK reaching $25-30 in the near future, fueled by a broader altcoin market rally. Van de Poppe even envisions a 50-80% surge in the altcoin market, pushing its valuation to a staggering $1.25 trillion.
While Van de Poppe’s analysis provides cause for optimism, it’s important to remember that expert predictions are not guarantees. The cryptocurrency market remains inherently volatile, and past performance is not a guide to future results.
CFGI to “neutral”
Meanwhile, LINK’s Fear and Greed Index is currently positioned at 40indicating a state of neutrality in market sentiment. This numerical rating reflects a balance between fear and greed among investors and traders in the context of Chainlink’s performance.
A “neutral” reading of the Fear and Greed Index implies that the market is not strongly biased towards extreme optimism or pessimism. In such a scenario, investors can adopt a measured and cautious approach, avoiding impulsive decisions driven solely by emotions.
Source: https://cfgi.io/
This balance of sentiment suggests that participants are likely assessing market conditions with a more rational and balanced perspective, taking into account various factors before taking significant actions.
The Fear and Greed Index is a valuable tool for market participants to gauge prevailing sentiment and potential market trends. In the case of Chainlink, which is currently at 40, this signifies a market environment where neither excessive fear nor greed dominates decision-making.
Featured image from Adobe Stock, chart from TradingView