Altcoins
Chainlink Surge Fuels Altcoin Market, Bulls Eye $20 Target
Chainlink (LINK), the leading Oracle network on the blockchain, is in great shape, outperforming the broader market with a 30% gain over the past week. This rise pushed LINK’s price to $17.82, solidifying its dominance among altcoins, as bulls set their sights on the much-vaunted $20 target.
On-chain Chainlink activity hints at renewed investor interest
Analysts point to several factors behind this rally. Santiment, an on-chain data provider, revealed an increase in activity from previously inactive wallets, suggesting renewed investor interest. This is reflected in the “Age Consumed” metric, which measures the total number of days that parts were idle before being moved. For Chainlink, this metric reached a peak of 5.38 billion – the highest ever.
Whales Piling Up, But Liquidations Pose Minor Threat
Santiment data also indicated minor liquidations in some portfolios, a phenomenon often associated with fear or uncertainty. While these selloffs could trigger short-term volatility, they could also present buying opportunities for savvy investors. Additionally, reports suggest that whales are accumulating LINK, further fueling the bullish sentiment.
The rationale for this perspective lies in the understanding that fear-induced sell-offs 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 general bullish sentiment surrounding the cryptocurrency. Whale accumulation, where large holders increase their positions, is often interpreted as a sign of confidence in the future potential of the asset.
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 considers a bullish signal. He predicts a potential breakout, with LINK hitting $25-$30 in the near future, fueled by a broader altcoin market rally. Van de Poppe even envisions a 50-80% rise in the altcoin market, pushing its valuation to a staggering $1.25 trillion.
Although Van de Poppe’s analysis inspires optimism, it is essential to remember that expert predictions are not guarantees. The cryptocurrency market remains inherently volatile and past performance is no guarantee of future results.
CFGI to ‘Neutral’
Meanwhile, LINK’s “Fear and Greed Index” is currently positioned at 40 years old, indicating a state of neutrality in market sentiment. This numerical valuation reflects a balance between fear and greed among investors and traders in the context of Chainlink’s performance.
A “neutral” reading of the Fear & Greed Index implies that the market is not strongly tilted towards extreme optimism or extreme pessimism. In such a scenario, investors can take 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, considering various factors before taking significant action.
The “Fear and Greed Index” provides a valuable tool for market participants to gauge prevailing sentiment and potential market trends. In the case of Chainlink’s current reading at 40, this signifies a market environment in which neither excessive fear nor greed dominates decision-making.
Featured image from Adobe Stock, chart from TradingView