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- Chainlink has seen a 2.74% price increase in 24 hours, spurred by institutional interest and recent bullish news.
- The spot market is showing signs of increased buyer dominance, signaling potential bullish movement.
- Resistance at the $16 price zone is crucial for LINK to maintain upward momentum and break free from bearish trends.
Chainlink (LINK) has been in the spotlight recently, making notable gains as the broader cryptocurrency market remains in a state of uncertainty. Over the last 24 hours, LINK’s price rose by 2.74%, fueled by the news that major asset manager Franklin Templeton is considering adding altcoins like Chainlink to its crypto index ETF. This announcement follows a series of developments that have sparked optimism among LINK investors, offering hope in an otherwise bearish market.
Bullish Developments Boost Chainlink’s Outlook
Recent positive news has provided some relief for Chainlink holders. In addition to Franklin Templeton’s potential move, the Depository Trust & Clearing Corporation (DTCC) upgraded the Bitwise Chainlink spot ETF to the pre-launch category, a sign of growing institutional interest. While these developments might not singlehandedly reverse the current market sentiment, they have offered a much-needed boost to Chainlink’s outlook.
The coin has seen a 15.25% price increase in the past week, which has reignited some short-term optimism. Despite this, the general market trend remains cautious, with many holders still uncertain about a lasting recovery. The question now is whether these institutional developments can help Chainlink break through its resistance levels and establish a more sustainable bullish trend.
Spot Market Activity and Buyer Dominance
On-chain metrics reveal a complex picture for LINK. The spot taker Cumulative Volume Delta (CVD) has been showing signs of buyer dominance since November 22, suggesting that demand in the spot market has been increasing. When this metric rises, it indicates that buyers are outpacing sellers, which is a bullish signal for the token.
However, there’s another key metric to watch—the LINK Hodler Position Change. This has remained in negative territory, showing that long-term investors (Hodlers) have been selling off their positions since October. This is in direct contrast to the recent uptick in price, indicating that while new buyers are entering the market, many established holders are still cashing out.
Resistance Levels and Market Sentiment
The 1-day price chart for LINK shows clear resistance around the $16 price zone. For Chainlink to gain further momentum and shift the market sentiment, it needs to reclaim this area as support. Currently, the buying pressure has not been strong enough to overcome the selling pressure, particularly from long-term holders.
Also Read: Chainlink Enters ‘Extreme Buy Zone’ — Could $LINK Surge Past $30 Soon?
Despite these challenges, the shift in market dynamics could indicate a shift toward a more sustained rally if the price can hold above key levels. However, it’s important to note that the market’s current mood remains tempered, and only time will tell if Chainlink can break free from its bearish trajectory.
Chainlink’s recent price movements and the increasing institutional interest provide a mixed but optimistic outlook. While there is a spark of short-term bullishness, sustained upward momentum will depend on several factors: continued buying pressure, a shift in Hodler sentiment, and overcoming key resistance levels. The next few weeks will be crucial in determining whether Chainlink can build on its recent gains or whether the market will remain stuck in a consolidation phase.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
