Chainlink May Resume Bull Run: 3 Factors That Show It
Chainlink has no intention of leaving the uplink and appears to be determined to repeat the July bull run. What factors play into the hands of LINK?
The low correlation of Chainlink with Bitcoin
Chainlink has once again demonstrated stability and independence from the general dynamics of the crypto market. The token continues to follow a long-term uptrend, hitting all-time highs in 2020. After breaking through the $4.9 resistance area in early July, LINK entered a consolidation phase at $8.30. The bullish movement continued in August, as a result, LINK peaked at $9.6 and is currently trading above $10.66.
The token has retained its upside potential despite signs of bearish divergence that periodically makes itself felt on technical charts. Significantly, LINK showed a low correlation with Bitcoin in 2020. For example, the LINK rally in July coincided with three months of Bitcoin consolidation in a narrow range of $9,000-$10,000. Also, LINK has barely reacted to the current bullish movement in Bitcoin.
On the one hand, the low correlation of LINK with BTC may be disadvantageous for the token during the rally of the flagship crypt. On the other hand, we see that the token is fueled by the support of its community of supporters who are interested in maintaining the current LINK price dynamics.
LINK investors are ready to “play” for a long time
LINK has shown itself to be a fast-growing altcoin, so the increase in the number of active addresses was quite an expected event. Investors continue to accumulate LINK. Even the rebound from the high in July and the subsequent decline in the LINK price by 40% from the peak did not become a reason for the massive sale of altcoin.
According to Santiment, since 2019, there have been about 100 Chainlink OTC whales that have been steadily accumulating tokens for over 12 months. Optimistic sentiment towards LINK, according to analysts, may become a driver for the next rally of the token. Santiment tweeted:
Today LINK is retesting both horizontal and upward support levels. Despite the dominance of bullish sentiment on the crypto market, LINK may reverse under the influence of bears. But, as the previous pullback shows, this will not significantly affect the enthusiasm of LINK Marines.
Chainlink Oracles Demand Growth
The Chainlink network has also established itself well in the decentralized blockchain solutions market. The collaboration between Chainlink oracles and the Agoric platform has already made some noise among the developers, which resulted in the launch of new DeFi applications. Also, last week it became known about the beginning of the cooperation of the Solve.Care platform with Chainlink to implement the blockchain for the global healthcare system.
Of course, the integration of Chainlink oracles promising projects cannot directly affect the price of LINK, but no one has canceled word of mouth. Warming up interest can play into the hands of the token in the long run.