LINK traders have every reason to stay bullish despite this short-term detour

• Chainlink’s LINK token experienced a price surge in the past month.
• Despite a brief price dip, positive metrics like rising social engagement suggested continued growth.

Chainlink [LINK] experienced substantial growth recently, with its price surging by 33% in the past month. According to Messari’s data, this surge in LINK’s price can be attributed to the growing demand for Oracle protocols within the DePIN (Decentralized Price Information Network) sector.

Only up and up for LINK

Oracle protocols, like Chainlink, are instrumental in providing reliable and accurate data to decentralized applications (DApps) and smart contracts. They serve as the bridge between blockchain networks and real-world data sources.

Realistic or not, here’s LINK’s market cap in BTC’s terms

The DePIN sector relies heavily on Oracle solutions to fetch real-time data, pricing information, and external events. As DeFi platforms, NFTs, and other blockchain applications continue to proliferate, the demand for Oracle services will rise.

How is LINK’s price doing?

Despite a minor price dip in recent days, LINK’s overall market performance remained positive. The Relative Strength Index (RSI) for LINK, an indicator of price momentum, briefly dropped to 41.72, indicating a short-term bearish sentiment.

Additionally, the Chaikin Money Flow (CMF), which measures the money flow into or out of an asset, declined to -0.15. This suggested a temporary shift toward selling the token.

Source: Trading View

However, several encouraging signs bolster LINK’s growth potential. The number of LINK holders steadily increased, indicating a growing interest in the token and its ecosystem. Social volume related to LINK has also witnessed a notable uptick.

This reflected heightened community engagement and discussions. Furthermore, the weighted sentiment for LINK turned positive, signaling that favorable comments and sentiment outweighed negative sentiment on social platforms.

Source: Santiment

The Market-Value-to-Realized-Value (MVRV) ratio for LINK has surged. This was a clear indication that LINK holders were experiencing substantial profitability. This may reduce the selling pressure on LINK, as holders may be inclined to retain their tokens due to their increased value.

Read Chainlink’s [LINK] Price Prediction 2023-2024

Source: Santiment

Looking ahead, Chainlink’s ecosystem is poised for further expansion with the impending launch of Staking v2. Furthermore, the introduction of Chainlink Staking v0.2 will kick off with a Priority Migration period. Thus, ensuring a smooth transition for existing stakers.

This development is expected to attract more addresses to participate in staking activities, strengthening the Chainlink network’s security and potentially driving greater demand for LINK tokens.