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What is Behind The 24% Chainlink (LINK) Surge?

Chainlink (LINK) has surged over 23.6% to reach past $17.84, marking its highest level since January 2021, propelled by a sudden movement of long-held dormant tokens.

Key momentum indicators, including the Age Consumed metric and bullish signals from Chaikin Money Flow, Aroon Up Line, RSI, and MFI, suggest a robust uptrend for LINK, reflecting a positive market sentiment and potential for further price appreciation.

Chainlink (LINK) is making waves in the crypto space as its price hits $17.84, a level unseen since January 2022. What’s fueling this surge? The catalyst appears to be the sudden movement of long-held, dormant tokens. This shift is underscored by key momentum indicators, suggesting that the altcoin’s upward trajectory may continue.

Sudden Movement Sparks Rally

On Tuesday, LINK’s Age Consumed metric surged to 5.35 billion, marking a staggering 404% intraday increase from the previous day’s 1.06 billion, according to on-chain data from Santiment. The Age Consumed metric gauges the number of tokens changing hands, multiplied by the duration they remained dormant. A spike in this metric indicates significant token movement after prolonged inactivity, signaling a substantial shift in market dynamics.

For LINK, the surge in Age Consumed was followed by a price uptick, hitting a low of $15.45 on Tuesday and rising to $18.07 at the time of writing, reflecting a 17% increase, as per CoinMarketCap data.

Fear, Uncertainty, and Doubt (FUD) as a Catalyst

Following the rally, there was a notable decline in the number of wallets holding LINK. Santiment’s observation on X (formerly Twitter) highlighted that this wallet liquidation signaled the presence of fear, uncertainty, and doubt (FUD), a common contributor to price hikes in the crypto market.

#Chainlink has jumped ahead of the #altcoin pack after some previously dormant wallets created the highest Age Consumed spike (5.38B, calculated by multiplying coins moved by the amount of days those coins had been dormant). This influx of $LINK back into the

(Cont) pic.twitter.com/eHVpeJz2HW

— Santiment (@santimentfeed) February 1, 2024

Bullish Momentum and Confirming Indicators

LINK’s price movements, as seen on the daily chart, reveal a robust rally. The Chaikin Money Flow (CMF), indicating market strength, returned a value of 0.07, suggesting an influx of liquidity that could drive further price appreciation. The Aroon Up Line, standing at 100%, signifies a strong uptrend, while the Relative Strength Index (RSI) and Money Flow Index (MFI) above their midlines indicate a preference for buying over selling among traders.

Weighted Sentiment and Future Prospects

As of now, LINK’s weighted sentiment is at 1.204. If this positive sentiment persists, there is potential for further value appreciation before an eventual correction. The crypto community will be closely watching to see if Chainlink can sustain its impressive momentum or if a market correction is on the horizon.

In conclusion, Chainlink’s surge to a two-year high, driven by the awakening of dormant coins, demonstrates the dynamic nature of the cryptocurrency market. With key indicators supporting its upward trajectory, LINK is positioned as a noteworthy player in the evolving crypto landscape

The post What is Behind The 24% Chainlink (LINK) Surge? appeared first on Crypto News Focus.

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