Summary:
- Chainlink is about to hit 7 days trading above the $10 psychological support zone
- However, social and on-chain metrics point towards a cautiously optimistic short term future for LINK
- Timothy Peterson has forecasted that ChainLink might not fall to $7 if LINK’s relationship with Bitcoin continues as is
The digital asset of ChainLink has traded above the $10 psychological price level for almost a whole week. In the mentioned time period, LINK retested the $12 resistance level on 12th October thanks to a crypto-wide bullish environment brought about by Square announcing that it had purchased $50 Million in Bitcoin.
At the time of writing, ChainLink is trading at $10.60 amidst news of a possible COVID19 second wave in Europe that could trigger additional lockdowns. This new development regarding the current state of the Coronavirus pandemic in Europe could cause some anxiety in the stock and crypto markets in the days to follow.
ChainLink’s Short Term Future is One of Cautious Optimism
According to the team at Santiment, the short term price action of ChainLink is one of cautious optimism. LINK’s social discussions continue to be bullish with holders adding 2.2 million to their bags in the last two and a half weeks. However, LINK’s social volume has mostly dropped back to neutral with holders still sending vast amounts of LINK to crypto exchanges. The latter fact could indicate a level of profit-taking by LINK investors.
It is with the above analysis that the team at Santiment shared the following tweet informing LINK traders of the uncertain short-term future of ChainLink’s price. The tweet also includes charts providing a visual representation of the aforementioned social and on-chain data related to LINK.
? $LINK‘s social and on-chain metrics are giving a cautiously optimistic outlook about its near-term price potential. Our latest featured insight dives into social volume, crowd sentiment, daily addresses, dormant circulation, & more. Read all about it! https://t.co/AUWm6LNPb1 pic.twitter.com/Ym5wyYiR7f
— Santiment (@santimentfeed) October 14, 2020
ChainLink Might Never Hit $7
With respect to ChainLink possibly falling to $7, Timothy Peterson of Cane Island Alternative Advisors forecasts that LINK might never dip to this level. Mr. Peterson’s analysis is based on ChainLink’s relationship with Bitcoin that has been identifiable for over two years. He explains:
$LINK may never hit $7. This relationship between #ChainLink and #Bitcoin goes back 2+ years. However it is just a price extrapolation – maybe ok in the short term but questionable in the long term. Could also go sideways for a year like 2019.
Mr. Peterson also provides the following chart to demonstrate the long-running relationship between the price of Chainlink and that of Bitcoin. From the chart, it can be seen that ChainLink’s fate is very much tied to that of Bitcoin.
