Increasing Social Dominance Boosts Chainlink’s Breakout Potential
After a period of almost two weeks marked by declines, there are clear indications of a potential reversal in Chainlink [LINK], with a noticeable emergence of a positive uptrend. This shift in momentum is closely accompanied by a remarkable surge in social dominance, reaching an all-time high.
The heightened social activity revolving around Chainlink suggests a growing level of attention and optimism within the community, hinting at a potential bullish trend on the horizon.
Rise in Dominance for Chainlink
Santiment’s data reveals that Chainlink [LINK] has recently witnessed a sharp increase in social dominance, reaching around 1.24%. The significance lies in the fact that LINK has not reached such a dominance level since January, making this the second-highest social dominance in the year.
This surge indicates that Chainlink currently commands over 1% of the overall crypto discourse, signaling a heightened level of attention and interest within the community. An increase in social dominance is typically viewed as a positive indicator, as enhanced visibility and engagement can allure more investors and traders, potentially leading to further price escalations.
The growing social presence around LINK could serve as an early indicator of a bullish trend being formulated for the asset.
Slight Decline in Total LINK Holders
An examination of Chainlink holders on Santiment’s platform uncovers a minor decrease in the total number of holders in the recent days. As of 6th September, the count stood at approximately 723,000, which has now dropped to around 722,000 at present.
This decrease in non-zero accounts hints that some holders may have divested their LINK holdings in the preceding days.
Despite the initial negative connotation of a decline in holders, the simultaneous increase in social dominance and positive price response point towards a bullish market indication.
The ability of the market to absorb selling pressure without a major adverse impact signifies an inherent strength and resilience in LINK’s market.
The rise in social discussions and sustained price momentum amidst the sell-offs possibly indicates that Chainlink is readying itself for further advancements, demonstrating a growing confidence in the asset’s prospective growth.
Positive Setup for Chainlink
An assessment of Chainlink’s (LINK) daily time chart confirms that its short-moving average (depicted by the yellow line) has served as resistance near the $11 threshold. The recent trend portrays positive price movements for LINK over the last three days.
As of now, the trading value stands at approximately $10.7. While breaching the current resistance level is pending, the trend hints at the potential for a more bullish shift if LINK manages to overcome this obstruction.
Further analysis of the Relative Strength Index (RSI) reveals its approach towards the neutral line, suggesting that a crossover above this threshold could indicate a more robust bullish trajectory.
A breakthrough over the $11 resistance coupled with an RSI shift towards bullish territory might translate into additional upward momentum for Chainlink.