While Bitcoin has remained stable in recent weeks, traders have turned their attention to altcoins. Oracle service provider Chainlink (LINK) has recently been the number one choice for crypto traders in the market.
Chainlink has been trading in the $6-$8 range for some time now, which is what traders refer to as an accumulation zone. On-chain data provider Santiment stated that as Chainlink’s social dominance spikes, traders have made a move. From Holiness:
#Chain link‘s market cap fell ~5% on Friday before rebounding just as the day’s trading (UTC time) closed. Three social dominance peaks appeared for $LINK, indicating that traders were making moves. The latter occurred just as the price started to rise again.
Analysts take over Chainlink
Benjamin Cowen, the popular crypto analyst and founder of Into The Cryptoverse (ITC), stated that Chainlink will outperform Bitcoin. He added that LINK is currently in the accumulation phase during the ongoing bear market and will outperform once the bull market resumes.
Furthermore, the fundamental developments in the Chainlink ecosystem are of great importance. Chainlink has been the first choice for several projects to enable smart contracts and secure data sharing.
Recently, Chainlink partnered with the world’s largest interbank payment system SWIFT to provide price feeds for testing cross-chain applications. “Chainlink acts as a kind of backbone for many cryptocurrencies,” Cowen said. He further added:
“Of course, one of the reasons I think it hasn’t been doing so well lately is not necessarily because Chainlink isn’t a great project, but more just because of the overall market risk and the fact that we’re basically in a bear market, but I think the fundamentals of Chainlink shine a little better in the bear market than sometimes in the bull market. ”
Another popular trader DonAlt stated that LINK usually outperforms during the bear market. During his recent interview, he added:
If you think back to 2018, 2019, 2020, we had LINK outperformed the entire market. LINK went up, and I think that’s a good story to follow and it has outperformed over the past few weeks… I think LINK could have another run.
Bhushan is a fintech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
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