Market sentiment appears to be the saving grace for Chainlink (LINK) after a recent price drop, fueled by positive developments like potential futures contracts on Coinbase and speculation around LINK ETFs.
Over the past few weeks, altcoins have seen a significant decline, with LINK experiencing a period of consolidation. Despite this, the altcoin wasn’t immune to short-term depreciation, dropping 3% in the last 24 hours. However, amidst this market volatility, there’s a surprising sense of optimism surrounding LINK.
What’s Fueling the Optimism?
Several developments are pushing LINK’s price action in a positive direction. Firstly, Coinbase Derivatives filed with the CFTC to list LINK-regulated futures contracts. This news has instilled confidence within the crypto community.
Secondly, speculation around LINK ETFs is adding fuel to the fire. Chainlink Red Pill, a prominent crypto personality, believes LINK ETFs could be on the horizon, potentially making it easier for institutions to invest in LINK.
Analyst Predictions and Fundamental Strength
Popular crypto analyst Swing Tony is bullish on LINK, predicting a potential rise to $0.0009 Bitcoin (BTC) during the current market cycle. This translates to a price target of over $67 for LINK, considering a $75,000 BTC price.
Fundamental analysis also paints a promising picture for LINK. AMBCrypto’s analysis of CryptoQuant data reveals a positive trend, with LINK’s exchange supply ratio declining steadily over the past week. This indicates that investors are moving their LINK holdings to external wallets, reflecting confidence in their future value and potentially reducing selling pressure.
Technical indicators like the arc-up line and Average Directional Index (ADX) also suggest a strengthening uptrend for LINK. Additionally, declining exchange inflows over the past week, as highlighted by Santiment, point towards increased accumulation and potentially less selling pressure.
What’s Next for LINK?
At the time of writing, LINK is trading at $13.83 after a breakout from $13.624. If the positive market sentiment persists, LINK could climb to the next resistance level of $14.52. A further surge could see it challenge the previously attempted $15.26 level.
However, a market correction could push LINK down to the crucial support level of $13.54. A deeper decline could even bring it to the local support level of $12.72.
In conclusion, while LINK‘s price dipped recently, the overall market sentiment surrounding the token remains positive. The combination of potential futures contracts, speculation around ETFs, and strong fundamentals could propel LINK’s price upwards in the near future.
