Chainlink (LINK), the oracle network powering decentralized finance (DeFi), is on a solid rise. exceeding a six-week high from $17.40. This increase comes amid a wave of optimism fueled by the recent approval of an Ethereum exchange-traded fund (ETF) and speculation surrounding a potential Chainlink ETF.
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Transactions and DeFi dominance fuel rally
On-chain data shows strong buying sentiment for LINK, with a record 11 profitable trades for every loss trade. This increase in profitability coincides with the broader market’s positive response to the Ethereum ETF. Analysts believe this approval signals growing institutional interest in cryptocurrencies, potentially paving the way for similar vehicles focused on specific projects such as Chainlink.
🔗📈 #Chain link has a big lead over the #crypto pack, quickly surpassing $17.50 for the first time in six weeks. #Onchain Today there are 11 profit trades for every 1 $LINK transaction at a loss. This is the highest percentage since December 8, 2022. https://t.co/nILlWsXWNh pic.twitter.com/joMV55V5x7
— Santiment (@santimentfeed) May 24, 2024
Tomi Point, a renowned crypto analyst, took to social media to express his belief in this regard Chain link could be the next beneficiary of the ETF boom.
Chainlink’s role in bridging the gap between DeFi and traditional finance makes it a prime candidate for an ETF. Point highlighted Chainlink’s robust DeFi ecosystem, which boasts reliable data connections to more than two dozen blockchains, as a key factor in its institutional appeal.
Technical data Flashes green
The current market sentiment surrounding Chainlink is overwhelmingly bullish. Despite the Fear & Greed Index hovering in “extreme fear” territory, most technical indicators point to a continued uptrend. As of May 24, 2024, a majority of technical analysis tools confirmed the positive outlook for LINK.
Several analysts have made bullish price predictions. Digitcoinprice predicts that LINK will reach $37.35 by the end of May, marking a staggering 117% increase. The overall bullish outlook is reinforced by LINK’s impressive performance over the past month, with the stock up more than 16%.
Chainlink Whales bring in $16 million more
Meanwhile, the bullish swings in whale activity on Chainlink this week are another key sign showing how popular LINK and other Ethereum-hosted cryptocurrency projects are among investors.
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The Santiment chart above shows changes in the balances of LINK tokens held by the 100 largest wallets in real time.
As of May 19, the top 100 Chainlink investors held 701 million LINK tokens. By May 25, they had increased their holdings by more than 1.2 million LINK, to a total of 702 million.
Featured image of Texture