Get the scoop on finance - sign up for mobile alerts
Altcoins
| On
February 2, 2024

This Catalyst Could Trigger Chainlink To Jump Further, According to Blockchain Analytics Firm Santiment

By Daily Hodl Staff

Crypto analytics firm Santiment says one metric is suggesting that decentralized oracle network Chainlink (LINK) could have more upside potential.

In a new thread on the social media platform X, the market intelligence platform says that Chainlink’s rally may continue even as LINK wallets see a sudden decline.

ADVERTISEMENT

According to Santiment, an abrupt wallet decline is generally a sign of a market capitulation due to fear, uncertainty and doubt (FUD) that can indicate an increase in prices could soon follow.

“Chainlink has jumped ahead of the altcoin pack after some previously dormant wallets created the highest age consumed spike (5.38 billion, calculated by multiplying coins moved by the amount of days those coins had been dormant). This influx of LINK back into the network’s circulation has likely contributed to the price jump.

Additionally, the network had seen minor liquidations of wallets, which is often a sign of FUD that can contribute to further price rises.”

Source: Santiment/X

LINK is trading for $18.76 at time of writing, up nearly 12% in the last 24 hours.

ADVERTISEMENT

Next up, Santiment says that the social dominance indicator, which tracks crypto discussions on social media platforms, may flip bearish for Bitcoin (BTC) this week and bullish for altcoins.

“Historically, a high ratio of crowd discussions toward Bitcoin is a sign of fear. However, since mid-2023, the euphoria and optimism surrounding the ETFs (exchange-traded funds) has flipped high BTC discussions into a greed indicator due to (arguably) unrealistic expectations for markets.

Three weeks since the SEC (U.S. Securities and Exchange Commission) approved the Bitcoin ETFs, it appears that this indicator has finally normalized.

High altcoin discussions may push the ratio of BTC discussions into a bearish ‘unhealthy’ area if they outperform the #1 market cap asset during this first week of February. Unlike the last two Bitcoin social dominance spikes that foreshadowed predictable tops, a negative spike means the asset is being ignored once again in favor of the crowd greedily over-leveraging portfolios toward alts once again.”

Source: Santiment/X

Bitcoin is trading for $43,140 at time of writing.

ADVERTISEMENT
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Tithi Luadthong