Chainlink Price Surge Powers Altcoin Market, Bulls Aim For $20 Target

Christian Encila

Last Updated: June 11, 2024 7:31 am

3 mins read

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Chainlink (LINK), the leading oracle network on the blockchain, has been on a tear, outperforming the broader market with a 30% gain in the past week. This surge has pushed LINK’s price to $17.82, solidifying its dominance among altcoins, as bulls set their sights on the vaunted $20 target.

Chainlink On-Chain Activity Hints At Renewed Investor Interest

Analysts point to several factors driving the rally. Santiment, an on-chain data provider, revealed a surge 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 have been dormant before being moved. For Chainlink, this metric hit a 5.38 billion spike – the highest ever recorded.

Whales Accumulating, But Liquidations Pose Minor Threat

Santiment’s data also indicated minor liquidations from some wallets, a phenomenon often associated with fear or uncertainty. While these liquidations could trigger short-term volatility, they might also present buying opportunities for savvy investors. Additionally, reports suggest whales accumulating LINK, further fueling bullish sentiment.

The rationale behind this perspective lies in the understanding that fear-induced sell-offs might create temporary price dips, allowing savvy investors to acquire assets at more favorable prices.

Moreover, recent reports have indicated a pattern 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 Bullish Picture

Crypto analyst Michael van de Poppe identified a “higher low” on the LINK/BTC trading pair, which he considers 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 for the altcoin market, pushing its valuation to a staggering $1.25 trillion.

While Van de Poppe’s analysis sparks optimism, it’s crucial to remember that expert predictions are not guarantees. The cryptocurrency market remains inherently volatile, and past performance is not indicative of future results.

CFGI At ‘Neutral’

Meanwhile, LINK’s “Fear & Greed Index” is currently positioned at 40, indicating a state of neutrality in the market sentiment. This numerical assessment reflects a balance between fear and greed among investors and traders in the context of Chainlink’s performance.

A “Neutral” reading on the Fear & Greed Index implies that the market is not heavily skewed towards either extreme optimism or pessimism. In such a scenario, investors may exhibit a measured and cautious approach, avoiding impulsive decisions driven solely by emotions.

Source: https://cfgi.io/

This equilibrium in sentiment suggests that participants are likely assessing the market conditions with a more rational and balanced perspective, considering various factors before making significant moves.

The “Fear & Greed Index” serves as a valuable tool for market participants to gauge the prevailing sentiment and potential market trends. In the case of Chainlink’s current reading at 40, it signifies a market environment where neither excessive fear nor greed is dominating decision-making.

Featured image from Adobe Stock, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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