Crypto analysis firm Santiment says there are indicators that decentralized oracle network Chainlink (LINK) may have further upside potential.
In a new thread on social media platform X, a market intelligence platform. To tell Even if LINK wallet suddenly declines, Chainlink’s rise may continue.
According to Santiment, a sudden drop in wallets is generally a sign of market capitulation due to fear, uncertainty, and doubt (FUD), and may indicate that a price increase may soon occur. there is.
“After some previously dormant wallets caused the largest consumption spike ever (5.38 billion, calculated by multiplying the coins moved by the number of days those coins had been dormant), Chainlink It made a leap forward ahead of the altcoin group. This influx of LINK into network distribution may have contributed to the soaring price.
Additionally, the network has also seen small liquidations of wallets, which is often a sign of FUD that can contribute to further price increases. ”
Link is trading at $18.76 at press time, up nearly 12% in the past 24 hours.
Next is Santimento To tell The Social Dominance Index, which tracks cryptocurrency discussions on social media platforms, could turn bearish for Bitcoin (BTC) and bullish for altcoins this week.
“Historically, a high percentage of crowd discussion for Bitcoin is a sign of fear. However, since mid-2023, the euphoria and optimism surrounding ETFs (Exchange Traded Funds) has led to a (possibly) negative response to the market. Realistic expectations have turned the discussion on BTC high into an indicator of greed.
Three weeks have passed since the SEC (U.S. Securities and Exchange Commission) approved Bitcoin ETFs, and this metric finally seems to be normalizing.
If altcoin arguments remained high in the first week of February and BTC arguments outperformed the number one asset by market cap, it would push the BTC arguments ratio into bearish “unhealthy” territory. There is a possibility that Unlike the previous two Bitcoin social dominance spikes that foreshadowed predictable highs, the negative spike meant the asset was once again ignored as the crowd greedily overleveraged portfolios for alternatives. means that it has been ”
At the time of writing, Bitcoin is trading at $43,140.
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