HomeNewsLINK's Meteoric Rise: Can Chainlink Sustain its 7-Day 24% Surge?

LINK’s Meteoric Rise: Can Chainlink Sustain its 7-Day 24% Surge?

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  • Cryptocurrency enthusiasts debate Chainlink’s sustainability following its remarkable 24% value surge in just one week.
  • Despite optimism, decreased trading volume and speculative factors raise questions about the longevity of LINK’s rally.

Chainlink (LINK) has captured the attention of cryptocurrency investors with a remarkable 24% increase in its value in just seven days. This upward trend has sparked a debate regarding its sustainability and whether LINK followers can maintain this momentum.

Since November 17th, LINK has experienced significant fluctuations in its trading activity, ranging from $12.85 to $16.6. A noteworthy milestone was reached on February 1st when LINK concluded a trading session above $16.6, defying the established trading range.

Santiment’s analysis highlights growth in LINK’s social media activity and an increase in Open Interest in futures. These data imply optimism in the market, albeit with some caution.

Source: Santiment

It is important to mention that, according to Santiment, cryptocurrency trading volume decreased by 20.3% compared to the previous week. This data suggests that LINK’s increase was not reflected across the entire altcoin sector.

The possibility of a temporary surge before a market value decline is real, especially with Bitcoin’s [BTC] resistance in the $43,000 to $44,000 range.

Santiment’s analysis also reveals a decrease in LINK’s development activity and the coin’s average age. Reduced development activity may cause concern among investors, while a decrease in the coin’s average age, combined with rising prices, indicates that holders may be looking to capitalize on their gains.

Source: Coinalyze

The increase in Open Interest, along with the jump to $18.88, suggests that the surge may be more speculative than driven by solid market demand. Despite the Short-Term Funding Rate showing a bullish outlook, the combination of these factors indicates that LINK’s rally may be overvalued.

We may witness a reevaluation of previous peaks at $16.6 in the coming days. In this context, traders may find opportunities to take advantageous long positions.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628