Following a significant downturn in the previous week, Chainlink [LINK] has once again experienced a surge in bullish momentum within the past 24 hours. This uptrend may not solely be a reaction to the shifting market landscape but could signify the initiation of a broader bullish trend. Is there a possibility for the token to set its sights on $50?
Resurgence of Chainlink Bulls
Last week, Chainlink encountered a notable 16% decline in its price. Nonetheless, bullish market participants swiftly intervened, propelling the token’s value upwards by more than 7% in the last day. Presently, LINK is valued at $24.84, boasting a market capitalization exceeding $15 billion.
Simultaneously, a prominent crypto analyst named World Of Charts recently shared insights via a tweet about a compelling development. Indications suggest that LINK might soon present investors with another opportunity to acquire the token at a reduced rate as it appears to be revisiting a crucial support level. If this support level is substantiated successfully, LINK could be on the verge of embarking on a surge towards the $50 mark.
Moreover, in a recent tweet by Spot On Chain, it was disclosed that Chainlink unlocked an additional 11.25 million LINK, equivalent to over $258 million. Notably, 10.625 million LINK, valued at $243.5 million, were transferred to Binance, while the remaining 625K LINK, worth $14.4 million, were directed to the multi-sig wallet “0xD50.”
Is Chainlink Poised for a $50 Breakout?
Subsequently, CryptoCrypto conducted an evaluation of the token’s on-chain performance to gauge its readiness for a surge towards $50 or beyond.
Surprisingly, despite the positive price action witnessed by the altcoin, the overall sentiment surrounding Chainlink appeared to turn bearish, as evidenced by a decline in its sentiment score. Despite this, the social volume pertaining to LINK remained relatively steady last week, underscoring its widespread appeal across the market.
Furthermore, there was a notable uptick in withdrawal transactions for LINK in the past week, indicating a mounting buying pressure on the token, which could potentially foreshadow a forthcoming price escalation.
Additionally, the MVRV ratio experienced an improvement after a previous dip to -2%. Historically, when this metric reaches such levels, it often suggests an imminent price upsurge.
Lastly, data from Coinglass highlighted a substantial increase in Chainlink’s long/short ratio over the 4-hour timeframe. A surge in this metric signifies a higher prevalence of long positions in the market compared to short positions, which could fortify an extended bull trend.
Therefore, if the current metrics and market conditions persist in favor of LINK, it is plausible to anticipate the token making strides towards the $50 milestone in the upcoming months.