LINK has rallied consistently for the past week and the price is at the $29.79 level, up by 7% in the last 24 hours. Despite a slow but steady increase in price, trade volume was up 22% in the past day. The price was still 43% away from its ATH of $52.88. The altcoin is concentrated in 77% HODLers wallets of which nearly 70% are profitable.
LINK’s rally is evident from the increasing volume of transactions, worth $4.44 Billion in the past week. The on-chain sentiment is bearish but LINK continues to remain undervalued. LINK has a slow recovery, however, the price is currently above the 200-day moving average. These metrics support the narrative of long-term rally for LINK.
With new partnerships and integrations, LINK’s rally is likely to be an extended one, as it was in the first week of May 2021. In the past 2 years, DeFi has moved forward and slower at the same time in terms of market capitalization, demand, and users across exchanges. It may be challenging to imagine the growth of DeFi without Chainlink oracles. LINK’s correlation with BTC is currently 0.94 and a high correlation with BTC is a key driver of the price rally.
The number of large transactions has dropped and the network is likely to see higher volume and number of transactions. The trade volume on top exchanges has increased, on Binance, Huobi Global and Coinbase the trade volume has increased in the past 24 hours. Among other metrics, the bid-ask volume imbalance supports the rally to the $50 level. The futures market momentum supports the bearish narrative and there may be a drop to below the $25 level.
Exchange outflows account for $547.8 Million worth of LINK in the past week and the inflows account for $431.8 Million. LINK’s current rank is 12, in terms of market capitalization, a rally is likely to put Link in the top 10, further increasing the demand by institutional investors and large investors.