Market Sentiment and Chainlink

Market sentiment around the token has remained bearish lately. However, metrics indicate that the possibility of a sustained bull rally can’t be ruled out.

After a major dip last week, Chainlink (LINK) gained bullish momentum over the last 24 hours. This rise might not just be a result of changing market conditions but could signify the beginning of a larger bull run. The question remains: can the token reach $50?

Chainlink Bulls are Back

Chainlink experienced a 16% price drop last week, but bulls quickly stepped in, pushing the price up by over 7% in the last 24 hours. As of now, LINK is valued at $24.84, boasting a market capitalization surpassing $15 billion.

Popular crypto analyst World Of Charts tweeted about an interesting development: LINK may soon give investors another opportunity to purchase at a discounted rate, as it appears to be retesting a support level. A successful test could lead LINK toward a rally to $50.

Additionally, Spot On Chain reported Chainlink unlocked 11.25 million LINK, worth over $258 million. Of this, 10.625 million LINK, valued at $243.5 million, went to Binance, while 625,000 LINK, worth $14.4 million, went to the multi-sig wallet “0xD50.”

Is LINK Ready for $50?

AMBCrypto assessed LINK’s on-chain metrics to gauge its journey towards $50. Surprisingly, despite the bullish price action, sentiment around the token has turned bearish, as shown by the decline in Chainlink’s weighted sentiment. Conversely, social volume remained relatively stable last week, highlighting its market popularity.

Optimistically, withdrawal transactions for LINK spiked last week, indicating rising buying pressure on the token, which could suggest a further price increase. Moreover, the MVRV ratio improved after dropping to -2%. This metric’s low point often signals an impending price rise.

Finally, Coinglass data revealed that Chainlink’s long/short ratio sharply increased over a 4-hour timeframe, indicating more long positions than short ones in the market, which could contribute to a sustained bull rally.

Therefore, if these metrics and market conditions continue to favor LINK, it wouldn’t be unrealistic to expect the token to move towards $50 in the coming months.