As Bitcoin's Dominance Declines, Chainlink Exploits the Market Shift - How?

LINK’s network activity increased along with the price.
Most figures indicated continued price growth, but some suggested otherwise.

Chain link [LINK] has gained a lot of popularity lately as its price has increased significantly over the past week.

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Decrypting the state of Chainlink LINK generates profits for investors

Interestingly, the token’s popularity increased Bitcoin [BTC] Its dominance has declined slightly in the recent past. Let’s take a closer look at what’s actually going on.

Source: CoinStats

Decrypting the state of Chainlink

IntoTheBlock recently posted one tweet which highlights a number of interesting developments regarding Chainlink.

The tweet first mentioned that there was a significant increase in LINK search trend data, reflecting renewed interest in the token.

The rising popularity had a positive impact on the blockchain’s network activity as the number of transactions began to increase.

To be precise, LINK recorded 5,82,000 transactions in the past day, which was almost the monthly high.

However, it was interesting to note that the increase in transactions did not help attract more users, as there was no major change in the new address graph.

But things were looking good in terms of investor interest as accumulation increased. According to the tweet, there were mainly net withdrawals from exchanges, indicating accumulation behavior.

In addition, whales were also stockpiling LINK, as the addresses that take up more than 0.1% of the supply showed a net accumulation of 25 million LINK last month.

LINK generates profits for investors

The increase in accumulation actually helped the token start a bull rally. According to CoinMarketCapLINK is up more than 20% in the past seven days.

At the time of writing, it was trading at $16.22 with a market cap of over $9.5 billion.

Thanks to that, LINK’s MVRV ratio registered a huge increase, indicating that more investors were making profits. The Open Interest also rose along with the price, indicating continued price appreciation.

Source: Santiment

Interestingly, Santiment recently posted tweet highlighting that bullish sentiment around the token increased. In fact, Chainlink witnessed its most bullish sentiment in over a year.

However, these positive numbers did not help LINK sustain its bull rally as the token’s price fell by almost 2% over the past 24 hours.

To see if this was the end of LINK’s double-digit bull rally, AMBCrypto analyzed its daily chart. According to our analysis, the MACD remained in favor of buyers.

Is your portfolio green? look at the LINK Profit Calculator

Moreover, the Chaikin Money Flow (CMF) recorded a sharp increase. This indicated that the latest price correction could be short-lived and that LINK would resume its rally soon.

However, the price of the token had reached the upper limit of the Bollinger Bands, which looked worrying.