Exploring How Chainlink Capitalizes on Bitcoin’s Decreasing Dominance in the Market

  • The popularity of LINK surged alongside its price surge.
  • While most indicators pointed towards a continued rise in price, a few suggested otherwise.

Chainlink [LINK] has been making significant strides lately, with its price soaring in the past week.

What’s intriguing is that the token’s popularity grew even as Bitcoin [BTC] dominance saw a slight decline recently. Let’s delve deeper into the current scenario.

Source: CoinStats

Exploring the Current State of Chainlink

IntoTheBlock recently shared a tweet outlining some intriguing developments related to Chainlink.

The tweet highlighted a significant increase in LINK’s search trend data, indicating a surge in interest in the token.

This spike in popularity positively impacted the blockchain’s network activity, with the number of transactions witnessing a sharp rise.

Specifically, LINK recorded 5.82k transactions in the last day, nearing its monthly peak.

Despite the uptick in transactions, it didn’t result in attracting more users, as there wasn’t a substantial change in new address graph.

On the brighter side, the interest from investors grew as accumulation increased. The majority of net withdrawals from exchanges hinted at accumulation behavior.

Additionally, whales were seen accumulating LINK, with addresses holding over 0.1% of the supply showing a net accumulation of 25 million LINK in the last month.

Profiting from LINK Investments

The rise in accumulation set the stage for a bull rally in the token. According to CoinMarketCap, LINK surged by over 20% in the past week.

Currently, it’s trading at $16.22 with a market cap exceeding $9.5 billion.

This spike led to a significant increase in LINK’s MVRV ratio, indicating more investors profiting. The Open Interest also saw a rise in line with the price surge, hinting at a sustained upward movement in price.

Chainlink's MVRV Ratio increasedChainlink's MVRV Ratio increased

Source: Santiment

In a recent update, Santiment tweeted about the growing bullish sentiment around LINK, which reached the highest level in over a year.

Despite these promising metrics, LINK experienced a minor setback, with its price dropping by nearly 2% in the past 24 hours.

To assess whether this signals the end of LINK’s double-digit bull run, AMBCrypto conducted an analysis of its daily chart, revealing that the MACD remained favorable for buyers.

Is your portfolio thriving? Explore the LINK Profit Calculator  

Furthermore, the Chaikin Money Flow (CMF) showed a sharp increase, suggesting that the recent price correction may be temporary, with LINK poised to resume its upward trajectory soon.

However, the token’s price had hit the upper band of the Bollinger Bands, indicating a potential cause for concern.

Source: TradingView

Next: Whale watch: $1B in Toncoin trades shake the market, tracking what’s next

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