Reasons Behind Chainlinks (LINK) Recent Price Breakout, Can it Go Higher?
LINK, the native cryptocurrency of the Ethereum-based decentralized blockchain oracle network Chainlink, has witnessed a price breakout fueled by strong on-chain activity and increasing investor confidence.
An analysis by blockchain intelligence platform Santiment revealed that technical indicators for LINK suggest there is a potential for continued price gains and that the assets long-term outlook remains positive.
Positive Sentiment Around Chainlink
According to Santiment, the Chainlink community considers the network a pivotal player in the altcoin market due to its decentralized oracle technology. Community members view the project as one that could drive innovation in the blockchain space and bridge the gap between on-chain smart contracts and off-chain data sources. As a result, the social media narrative surrounding LINKs potential is enthusiastic.
Whether or not it will fully deliver on these high expectations remains to be seen, but the communitys confidence in the project continues to play a strong role in its ongoing market presence, Santiment said.
LINK currently ranks 14th on the list of top crypto assets by market cap. Over the past few days, the cryptocurrency has gained 10.2%, driven by increasing accumulation by whales and large investors.
Risks and More Upside Potential
Whale transaction counts for trades worth $100,000, $1 million, and above have been rising, highlighting the interest of high-net-worth individuals and institutional investors in Chainlink. On-chain data shows that holders with massive amounts of LINK have aggressively accumulated the token over the past few weeks.
As of August 15, wallets holding one million or more LINK collectively held 685.5 million of the token. However, their stash had increased to 694 million by the time of writing, indicating an addition of 8.5 million coins within roughly six weeks. Santiment said the growth is one of the fastest jumps in whale coin accumulation in three years.
Additionally, Chainlink has recorded a significant performance against Bitcoin, with LINK outperforming the leading crypto asset by 8.8% during its latest surge.
Interestingly, Chainlinks short and long-term Market Value to Realized Value ratios are currently in negative territory, indicating that LINK still has more upside potential and that there is still plenty of room for the asset to grow.
However, Santiment warned investors to apply caution as LINK could slide into slightly risky territory while recording short-term average returns.
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