Chainlink Becomes Crypto Winner With 21% Rally: What’s Driving This?

Chainlink
(LINK)
has
enjoyed
a
sharp
surge
of
more
than
21%
over
the
past
24
hours.
Here’s
what
data
suggests
could
be
behind
this
rally.

Chainlink
Has
Surprised
Crypto
Market
With
Breakout
In
The
Past
Day

While
most
cryptocurrency
sectors
have
seen
flat
or
small
green
returns
over
the
last
24
hours,
Chainlink
has
shown
a
decoupling
as
it
has
observed
some
sharp
bullish
momentum
in
this
window.

Related
Reading

Here
is
a
chart
that
displays
how
LINK’s
recent
performance
has
looked
like:

With
this
sudden
burst,
Chainlink
has
touched
the
$16.7
mark
for
the
first
time
since
the
crash
during
the
first
half
of
April.
While
the
asset
has
now
retraced
a
major
part
of
this
plunge,
it
still
hasn’t
made
a full
recovery.

Should
LINK’s
bullish
momentum
continue,
though,
it
may
not
be
too
long
before
the
cryptocurrency
can
reclaim
the
$17.8
level
it
was
trading
at
just
before
the
crash.

As
for
where
Chainlink

stands
in
the
wider
market,
the
table
below
shows
that,
based
on
market
cap,
it’s
currently
the
15th
largest
coin.

LINK
isn’t
too
far
off
from
Polkadot
(DOT)
now,
so
it’s
possible
that
if
the
price
rise
continues,
the
coin
will
dethrone
DOT
and
take
over
the
14th
spot
on
the
list.

Now,
what
could
be
the
reason
for
Chainlink’s
sudden
decoupling
from
the
rest
of
the
market?
Data
from
the
on-chain
analytics
firm
Santiment
may
perhaps
provide
some
hints.

The
Total
Number
Of
LINK
Whales
Is
At
A
6-Month
High
Now

As
pointed
out
by
Santiment
in
a

post
on
X,
Chainlink
investors
holding
100,000
tokens
or
more
of
the
asset
in
their
balance
have
recently
seen
their
address
count
increase.

This
cutoff
is
equivalent
to
around
$1.67
million
at
the
current
LINK
exchange
rate.
Investors
with
holdings
this
large
are
popularly
referred
to
as
whales.

Whales
can
be
influential
entities
in
the
market
because
they
can
move
a
large
amount
of
volume
in
a
short
span
of
time.
As
such,
their
behavior
may
be
worth
monitoring.

From
the
graph,
it’s
visible
that
Chainlink’s
total
number
of
whale
addresses
has
hit
564
after
the
latest
rise,
which
is
the
highest
the
metric
has
been
since
October
of
last
year.
This
increase
in
the
number
of
whales
on
the
network
may
be
partially
behind
the
surge
that
LINK
has
just
seen.

In
the
same
chart,
the
analytics
firm
has
also
attached
the
data
for
another
indicator:

social
dominance.
This
metric
tells
us
about
the
share
of
cryptocurrency-related
social
media
discussions
that
LINK
occupies
right
now.

Related
Reading

This
indicator
has
shot
up
alongside
this
rally,
implying
the
interest
around
the
coin
has
spiked.
Historically,
such
a
rise
in
attention
has
been
a
bearish
sign
for
the
asset,
so
it
remains
to
be
seen
if
these
high
values
will
be
maintained.
“If
social
dominance
calms
and
FOMO
doesn’t
take
over,
bullish
conditions
are
ahead,”
notes
Santiment.

Featured
image
from
iStock.com,
CoinMarketCap.com,
Santiment.net,
chart
from
TradingView.com