Chainlink’s price action: here’s what the alt is poised for in the coming weeks?
LINK’s price has consistently increased over the past 2 weeks. The price was at the $47.40 level, after a 33% gain in the past week. Despite dropping to the twelfth position in terms of market capitalization, LINK’s framework development and maturation of the ecosystem signal a bullish sentiment.
There have been several individual use-cases fuelled by the LINK network, and most applications rely on LINK’s liquidity. LINK’s liquidity on Uniswap reached an ATH a few hours ago based on data from Glassnode, and this is one of the many factors driving the utility of LINK.
Additionally, LINK is an altcoin that is concentrated by large HODLers. A drop in concentration signals an increase in liquidity and across spot exchanges. LINK’s percent supply held by the top 1% addresses just reached a 1-month low of 84.034%.
This drop is bullish for LINK’s price in the short term since LINK is now changing hands and hitting the wallets of retail traders and traders who are likely to contribute to the liquidity. With 98% HODLers profitable at the current price level and liquidity, the on-chain sentiment is bullish and supports the increase in liquidity.
LINK hit a new ATH of $51 based on data from coinmarketcap.com and the momentum persists. The number of transactions on the LINK network is up over 200% over the last week and more retail traders are exposing their portfolio to LINK. Low-cap oracles are rallying with LINK’s price growth.
Institutions like Grayscale continued to accumulate through the dips, just as retail traders and HODLers. Grayscale’s LINK trust currently holds $7.2 Million worth of LINK, based on data from Grayscale’s latest update. As a top volume gainer and a top altcoin, LINK is part of more portfolios than it was at the beginning of 2021.
From a fundamental viewpoint, LINK’s partnerships and integration by projects on BSC and top DeFi projects make it relevant and updated for the retail trader. Unlike ERC-20 projects and altcoins that have been labeled as zombie chains, LINK’s high utility is driving the bullish sentiment with successful partnerships with Paxos Global, Smart Zip, Wowswap.io, RCN Finance and Upshot.io among others. LINK’s network activity and price action make it one of the hottest altcoins in the top 25.