Contents
Chainlink (LINK) has surged to a two-year high, trading at $17.84, the highest level since January 2022. This remarkable upswing is attributed to the movement of previously dormant coins, providing strong momentum indicators for the altcoin. In this article, we delve into the dynamics behind Chainlink’s price surge and the key indicators signaling its sustained growth.
Highlights:
- Big jump in Age Consumed metric suggests long-held tokens are moving, driving the price increase.
- Despite the rally, some investors are selling (liquidating wallets), indicating fear and uncertainty.
- Technical indicators like CMF, Aroon Up, RSI, and MFI suggest the price rally may continue.
- Positive at 1.204, hinting at further price gains before a potential correction.
Unveiling Dormant Tokens’ Impact on Chainlink’s Price
The surge in Chainlink’s price is closely linked to the sudden activity of long-held, dormant tokens. Santiment’s on-chain data reveals that LINK’s Age Consumed metric experienced a substantial increase, reaching 5.35 billion on Tuesday, a remarkable 404% intraday surge from the previous day. The Age Consumed metric tracks the transfer of tokens that have been idle for an extended period, signifying significant market shifts. In LINK’s case, this surge in activity preceded an increase in its value, bottoming at $15.45 on Tuesday and currently trading at $18.07.
Fear, Uncertainty, and Doubt (FUD) Surrounding Chainlink
Following the rally, Chainlink witnessed a decrease in the number of wallets holding the token. Santiment suggests that this liquidation of wallets indicates the presence of fear, uncertainty, and doubt (FUD), a phenomenon often contributing to price hikes. This observation underlines the complex interplay of market sentiment and the role it plays in the value of Chainlink.
Bulls Hold Steady
Examining Chainlink’s price movements on a daily chart provides further insights into the strength of the altcoin’s rally. The Chaikin Money Flow (CMF) is trending upward, registering a value of 0.07, indicating a positive inflow of liquidity that can drive a continued price rally. Additionally, LINK’s Aroon Up Line is at 100%, signifying a strong uptrend with recent highs achieved. Both the Relative Strength Index (RSI) and Money Flow Index (MFI) are above their midlines, suggesting a preference among traders to buy Chainlink rather than sell for profit.
Analyzing Chainlink’s Weighted Sentiment
As of the latest data, Chainlink’s weighted sentiment stands at 1.204. This metric, if maintained, signals the potential for LINK’s value to rise further before a correction. The weighted sentiment serves as an additional factor to consider in understanding the prevailing market sentiment around Chainlink.
Conclusion
In conclusion, Chainlink has experienced a substantial surge to a two-year high, driven by the movement of previously dormant tokens. The indicators, including Age Consumed, Fear, Uncertainty, and Doubt (FUD), and bullish trends, collectively suggest a robust and positive momentum for Chainlink’s price. Traders and investors keenly watch these dynamics as the altcoin continues its upward trajectory, keeping an eye on potential corrections in the future.
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