While Bitcoin has stayed steady over the last few weeks, traders have been putting their attention to altcoins. Oracle service provider Chainlink (LINK) has been recently the top choice for crypto traders in the market.
For a while, Chainlink has been trading in the range of $6-$8 which traders call an accumulation zone. On-chain data provider Santiment stated that as the social dominance of Chainlink spikes, traders have been making a move. As per Santiment:
#Chainlink‘s market cap dropped ~5% Friday before bouncing just as the day’s trading (UTC time) closed. Three social dominance spikes appeared for $LINK, indicating traders were making moves. The latest occurred just as the price began rising again.
Analysts’ Take on Chainlink
Benjamin Cowen, the popular crypto analyst and founder of Into The Cryptoverse (ITC) stated Chainlink will outperform Bitcoin. He added that LINK is currently in the accumulation phase during the ongoing bear market and shall outperform once the bull market resumes.
Furthermore, the fundamental developments happening in the Chainlink ecosystem are of great importance. Chainlink has been the top choice for several projects to enable smart contracts and secure data sharing.
Recently, Chainlink partnered with the world’s largest interbank payments system SWIFT to provide price feeds for testing cross-chain applications. “Chainlink sort of acts as a backbone for a lot of cryptocurrencies,” said Cowen. He further added:
“One of the reasons why I think it hasn’t done as well recently, obviously, is not necessarily because Chainlink isn’t a great project it’s more so just because of the overall market risk and the fact that we are in fact in a bear market, but I do think the fundamentals of Chainlink shine through a bit better in the bear market than they sometimes do in the bull market.”
Another popular trader DonAlt stated that LINK usually outperforms during the bear market. During his recent interview, he added:
If you think back in 2018, 2019, 2020, we had LINK outperform the entire market. LINK was going up, and I think that’s a good narrative to follow and it’s been outperforming in the last few weeks… I think LINK could have another run.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.