When this article was written, the price of Chainlink had increased by more than 20% in comparison to the previous week. Even though the trade volume of the decentralised oracle network has decreased across exchanges during the ongoing altcoin rally, the network’s current liquidity is sufficient for the price to increase along with the leading altcoins. One dependable metric that indicates this is the quantity of Chainlink held by the top 10 whales, which noted a figure of 68.7% exactly six months ago.
Nevertheless, at this juncture, the price rally is accompanied by an increase in the concentration of large HODLers.This is why the recent price rally in Chainlink could last for quite some time.
An increase in activity on the network was indicated when the Chainlink price reached an all-time high of $44.40. At the time of this publication, 79% of HODLers were considered to be large holders. Additionally, there was an increase in the number of transactions worth $100k or more, which reached levels not seen since ETH reached its most recent ATH. It is very likely that Chainlink’s plan to launch additional tamper-proof oracle networks will provide additional fuel for this extended price rally over the next few weeks.
In addition to this, a series of new smart contracts on the Chainlink network, such as NewchangeFX, OddzFinance, and Polkamonorg, amongst others, are likely to make it possible for developers to create DeFi applications. It is highly likely that this will contribute to the price rally of Chainlink in the same way that the launch of tamper-proof oracle networks did.
In addition, the volume of trade has only begun to decrease today, but it has increased by over sixty percent over the course of the previous three days. LINK’s price and trade volume have increased to such an extent on several occasions over the course of the past few years that the alternative cryptocurrency has been ranked in the top five, based on market capitalization. The most recent whitepaper that Chainlink has published outlines the plans for the cryptocurrency, and it is one that once again suggests that a prolonged price rally may be coming soon.
In addition, the data from IntoTheBlock indicates that the on-chain sentiment is bullish at the present time. Over the course of the past week, the volume of large transactions conducted on the Chainlink network has increased by more than 5%, which is another indication of an extended rally. Despite the fact that more than 99 percent of holders are making a profit at the current price level, the price has been able to withstand the competition from sellers.
The fact that the correlation between LINK and Bitcoin has been increasing as of late is yet another factor that has contributed to the price rally of LINK. The high correlation that Ethereum’s price has with Bitcoin’s price was the primary factor driving Ethereum’s price, and this is also the case with LINK.
It is important to keep in mind, however, that at the time of this writing, the cryptocurrency market was exhibiting a downward trend as a direct result of Turkey’s ban on crypto-payments. In light of the fact that Bitcoin was trading for less than $61,000 while LINK was valued at just over $40, an observation was made that suggested this correlation is a two-edged sword.
After the market has returned to its previous level of stability and LINK’s price has once again climbed to the level mentioned above, LINK will still be undervalued, and the price rally will proceed in accordance with the metrics mentioned above.