Three reasons why Chainlink’s price will head this way
With its rapidly increasing trade volume, LINK may be one of the hottest DeFi projects in summer 2021. LINK’s trade volume is up nearly 70%. The altcoin is currently trading at the $36.81 level and the price has dropped nearly 8% in the past 24 hours. Consolidating alongside ETH and most top altcoins, LINK may be in the buy zone, considering that the price has remained mostly above $39 since the beginning of May 2021.
In the two altcoin bull runs of 2021, LINK has rallied consistently and emerged as the leader of DeFi 2.0.
Based on the above chart from Dune Analytics, the DEX trading volume for LINK hit a peak above 1.5 Million several times since February the 17th, 2021. Since the beginning of May 2021, the volume has remained largely above 1 Million and this is an indication of the bullish sentiment across DEXes.
Top DeFi users who utilize DeFi and are bullish on DeFi are bullish on LINK, based on the chart and the on-chain analysis from IntoTheBlock. Currently, LINK is concentrated in 79% Large HODLer wallets. Of LINK’s HODLers, 73% are profitable at the current price level, despite nearly 10% daily drop in price in the last 24 hours.
This is a sign of LINK’s high short-term ROI. The LINK network facilitated $5.6 Billion worth of large transactions in the past week alone, and this is when the altcoin was consolidating. The rotation of investment from ETH and other altcoins to LINK is noted in the past few weeks since BTC and similar highly correlated altcoins lost market capitalization and LINK continued rallying.
LINK’s HODLer composition, its frequent updates and several partnerships across the industry have kept it relevant and in headlines, contributing to the altcoins social volume and transaction volume across exchanges. LINK is competing for a spot in the top 5 DeFi tokens in Summer 2.0, based on these metrics.
At the same time, LINK is competing for a spot in the top 10 cryptocurrencies by market capitalization and LINK’s macro market structure suggests bullish momentum in LINK. The concentration by large HODLers is increasing, this may be a sign of accumulation at the current price level or simply an increase in the buyers. LINK’s rally is the most awaited one in DeFi summer 2.0.