As Bitcoin has remained stable over the past few weeks, traders have turned their attention to altcoins. Service provider Oracle Chainlink (LINK) has recently been the top choice for crypto traders in the market.
For a while, Chainlink has been trading in the $6-$8 range, which traders refer to as an accumulation zone. On-chain data provider Santiment said that as the social dominance of Chainlink spikes, traders have stepped up. According Saniment:
#Chain linkThe market capitalization of fell about 5% on Friday before rebounding just at the close of the day (UTC time). Three peaks of social dominance emerged for $LINK, indicating that traders were making moves. The last one happened just as the price started to rise again.
The analyst view on Chainlink
Benjamin Cowen, the famous crypto analyst and founder of Into The Cryptoverse (ITC), said that Chainlink will outperform Bitcoin. He added that LINK is currently in the accumulation phase during the ongoing bear market and is expected to outperform once the bull market resumes.
Additionally, fundamental developments occurring in the Chainlink ecosystem are of great importance. Chainlink has been the first choice for several projects aimed at enabling smart contracts and secure data sharing.
Recently, Chainlink partnered with the world’s largest interbank payment system, SWIFT, to provide price feeds for testing cross-chain applications. “Chainlink kind of acts as a backbone for many cryptocurrencies,” Cowen said. He further added:
“One of the reasons I think it hasn’t done so well recently, obviously, isn’t necessarily because Chainlink isn’t a big project, it’s more because of overall market risk. and the fact that we are actually in a bear market, but I think the fundamentals of Chainlink shine a little better in the bear market than they sometimes do in the bull market.
Another popular trader, DonAlt, said that LINK usually outperforms during the bear market. During his recent interview, he added:
If you think back to 2018, 2019, 2020, LINK outperformed the broader market. LINK was going up, and I think that’s a good story to follow and it’s outperformed over the past few weeks… I think LINK might have another run.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.