There's "Heavy Doubt" Chainlink Will Continue to Rally After 300% Surge

There’s “Heavy Doubt” Chainlink Will Continue to Rally After 300% Surge

Nick Chong

Last Updated: June 11, 2024 1:10 pm

3 mins read

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Calling Chainlink’s (LINK) recent price performance impressive would almost be an understatement.

The cryptocurrency has been on a tear over the past three days. After printing a topping pattern near $4.70, the altcoin rocketed higher by around 50%, reaching a high of $6.60 on Wednesday.

Despite the pullback to $6.30, LINK is still up by over 300% from the March capitulation lows. This is especially impressive when you consider that Bitcoin is only up by a relatively weak 150%.

Chart of Chainlink's price action since the middle of February from TradingView.com

Chainlink’s bullish trend is unlikely to last, though, social sentiment data indicates.

Chainlink Is Running Into Some Doubters

Up hundreds of percent in recent months, many investors think that Chainlink is unlikely to move even higher.

Blockchain analytics firm Santiment released a report on July 8th, showing that LINK’s social sentiment is actually heavily bearish:

“Somehow, in spite of LINK’s monstrous 82% gain over the past three months, there are an abundance of non-believers when it comes to its current price levels. Sitting below -0.5 on the deviation from mean scale means there is heavy doubt that this rally can continue. In short, this is a good sign that the rally can continue.”

Chainlink weighted social sentiment vs. LINK's price from Santiment (@Santimentfeed on Twitter).

Some users are seemingly putting their money where their mouths are.

Blockchain analytics firm Glassnode reported earlier this week that in a single day, more than $15 million worth of LINK was sent to Binance.

“Based on our exchange data, yesterday we observed almost 5,000 LINK transfers onto Binance wallets. This resulted in a daily net transfer volume into the exchange of more than $16 million USD worth of LINK – the largest we’ve seen so far.”

It isn’t transparent what happened to these coins afterward. But many concluded that the Chainlink was likely sold or is currently being sold.

Chainlink (LINK) net flow into Binance from Glassnode (@Glassnode on Twitter). Current as of Jul. 5

Stronger and Stronger Fundamentals

While Chainlink may have some doubters, the asset has seen strengthening fundamentals over recent weeks, contributing to the upswing.

As reported by NewsBTC, China’s Blockchain Service Network (BSN) announced the integration of Chainlink’s core oracle technology in June. The BSN is a group made up of Chinese banks, technology giants, and governmental agencies. It also represents one of China’s biggest deployments of blockchain technologies.

Chainlink’s technology has also been adopted by crypto-asset exchange Huobi. The companies announced last week that Huobi will be integrating Chainlink nodes into its wallet service.