A mere fortnight ago, Chainlink [LINK] dazzled the markets with an impressive 21% surge in a single day, propelled by a $1 million acquisition from World Liberty Financial (WLF).
This sudden surge, intensified by the “Trump pump,” elevated LINK to the forefront as a significant player at the crossroads of politics and cryptocurrency. However, the excitement quickly waned, leading to a subsequent impact on the altcoin.
Currently, LINK has retreated to approximately $22.8, with a bearish MACD crossover suggesting further decline. This raises the question – What lies ahead for this altcoin?
LINK’s Resurgence Deserves FOMO Attention
Over the past four years, Chainlink has made remarkable progress. The number of addresses on its network has surged from 213k to 690k. Additionally, in December, its total value locked (TVL) crossed the $1 billion mark for the first time.
An intriguing development is the transformation in LINK’s token distribution. Previously dominated by major holders controlling 70% of the supply, this figure has now decreased to 48%. Simultaneously, retail investors have been increasingly involved, now possessing 32% of LINK’s supply.
Why is this shift significant? A recent CryptoCrypto report highlighted Ethereum’s [ETH] growing centralization, with large holders exerting substantial influence, hindering the price from surpassing the $4k threshold. Thus, LINK’s move towards a more equitable distribution could set it apart over the long haul.
Nevertheless, there’s a conundrum – Despite LINK’s progress in decentralization, its price has struggled to reclaim its peak of $53 established three years back. Despite robust volume and network expansion, LINK has been unable to break into the top 10.
This indicates that external market factors, in conjunction with a noticeable exodus of whale wallets, might be exerting downward pressure on LINK’s price.
With that being said, the recent “Trump pump” acted as a potent catalyst, igniting a wave of new FOMO among fresh participants. Hence, the question arises –
Is this momentum sustainable?
Over the past 30 days, LINK has experienced a surge due to impressive double-digit growth, outstripping many competitors. In a broader view, boasting a 50% price increase year-to-date (YTD), it remains in close contention with Ethereum.
However, Chainlink truly shines in its wide-reaching appeal. Endorsement from President-elect Donald Trump has sparked fresh interest, while the reduction in whale manipulation has cleared the path for a more natural market environment.
Moreover, LINK’s Oracle network is extending its utility across diverse sectors, establishing real-world applicability.
Considering all these dynamics, Chainlink is solidifying its position as a frontrunner in the altcoin arena. It is alluring both short-term traders seeking diversification and long-term HODLers eyeing consistent growth.