Barely a fortnight ago, Chainlink [LINK] saw a significant surge of 21% in a single day, propelled by a $1 million acquisition by World Liberty Financial (WLF), resulting in a dazzling performance on the charts.
This spectacular rally, driven by the “Trump pump,” thrust LINK into the limelight as a pivotal player at the crossroads of politics and cryptocurrency. However, the surge of excitement waned as swiftly as it appeared, impacting the altcoin in parallel.
Presently, LINK has retraced to approximately $22.8, displaying a bearish MACD crossover that suggests the potential for further decline. Thus, the looming question – What does the future hold for this altcoin?
LINK’s Resurgence Evokes FOMO Sentiments
Over the past four years, Chainlink has marked remarkable progress. The number of network addresses has surged from 213k to 690k. Additionally, in December, its total value locked (TVL) surpassed $1 billion for the first time.
An intriguing development is the shift in LINK’s token distribution. Previously, major holders controlled 70% of the supply, but this percentage has now dwindled to 48%. Simultaneously, retail investors have increased their presence, now holding 32% of the LINK supply.
So, why does this matter? A recent report from CryptoCrypto shed light on Ethereum’s [ETH] escalating centralization, where large holders exert extensive control, impeding the price from breaching the $4k threshold. In contrast, LINK’s move towards a more equitable distribution could differentiate it in the long run.
Despite making strides towards decentralization, LINK has encountered challenges in reclaiming its all-time high of $53 set three years ago. Despite robust volume and network expansion, LINK has yet to break into the top 10 cryptocurrencies.
This implies that external market dynamics, coupled with a considerable number of large wallets exiting the scene, might be exerting downward pressure on LINK’s price.
Nevertheless, the recent surge attributed to the “Trump pump” acted as a potent catalyst, inciting fresh FOMO frenzy among newcomers. This prompts the crucial question –
Is this Momentum Sustainable?
In the past month, LINK has witnessed a surge fueled by impressive double-digit growth, outpacing many counterparts. Looking at the bigger picture, with a 50% price increase year-to-date (YTD), it closely rivals Ethereum’s performance.
However, Chainlink’s distinct appeal lies in its widespread popularity. Endorsement from President-elect Donald Trump has sparked renewed interest, while the decrease in manipulative activities by whales has paved the way for a more natural market environment.
Furthermore, LINK’s Oracle network is expanding its utility across diverse sectors, enhancing its real-world applicability.
Considering these dynamics, Chainlink emerges as a frontrunner in the altcoin competition, alluring both short-term traders seeking a diversified investment and long-term HODLers eyeing consistent growth.