On-Chain Analytics: This Crypto Up 200% From December’s Bottom Has Room to Rally
Although the entire crypto market, Bitcoin included, has posted stellar gains since December’s bottom, some digital assets have been performing better than others.
One such altcoin is Chainlink (LINK) — a prominent blockchain project linking off-chain data to platforms like Ethereum. This crypto has gained a jaw-dropping 200% since the December bottom that was established near $1.60, rallying as high as $5.00 just the other day.
Although this is already a stellar performance, especially considering that the S&P 500, commodities, and other leading signs of traditional market strength have tanked, LINK is purportedly preparing to rally even higher, on-chain data from a leading industry firm suggests.
Top Crypto LINK Has Room to Rally: Santiment Suggests
A user going by “Garry” on cryptocurrency analytics platform Santiment released an extensive analysis on LINK on Friday, providing a confluence of reasons why the crypto-asset could have room to decisively rally past $5.00 in the coming weeks. Some of these reasons are as follows:
Both “LINK” and “Chainlink” have appeared near the top of Santiment’s Emerging Trends tracker, suggesting the cryptocurrency is rapidly gaining popularity. This is important because a similar spike in social volume last happened in February, prior to the crypto breaking even higher than the previous all-time high.
The count of daily active addresses transacting LINK recently hit a multi-month higher, though this metric started to trend lower. Although seemingly bearish, Garry wrote that this is a sign that this is “similar [to the previous all-time high], [so the] trend of the crypto may continue building new tops.”
The cumulative balance of Chainlink’s whales (non-exchange addresses) has continued to trend higher and higher, suggesting rapid accumulation, implying investors in the cryptocurrency expect the asset’s rally to continue.
#Chainlink once again broke an all-time high yesterday, hitting $4.89! Onchain tx. volume, daily active addresses, and % active coins were all showing signs of bullishness, and it was great to see things come to fruition for $LINK holders. Read our latest!https://t.co/9qpExWObma pic.twitter.com/e40pYVXUPc
— Santiment (@santimentfeed) March 7, 2020
While there are these signs, Satoshi Flipper has suggested that Bitcoin falling under $9,000 in the coming days could jeopardize the current advantageous position of the crypto. Also, the aforementioned Santiment analysis provided its fair share of potential signs of a medium-term bearish reversal.
Chainlink’s Strong Fundamental Trend
Although much of LINK’s recent rally seems to be based on momentum (hype), the underlying project, Chainlink, has seen a series of positive developments over the past few months.
Just recently, Ethereum-centric sports tokenization startup Chiliz revealed a partnership with Chainlink; this move sees the former crypto company use Chainlink’s technology to activate certain smart contract functions based on real-world data. This news is big because Chiliz has made major deals with football clubs, namely FC Barcelona, Juventus, and A.S. Roma.
Stretching further back in time, Google Cloud, the firm’s cloud computing services platform, released an article titled “Building hybrid blockchain/cloud applications with Ethereum and Google Cloud”.
In this article, the company mentioned the importance of Chainlink, with Google adding that it has integrated the project, allowing for Ethereum smart contracts and crypto assets to interact with BigQuery, Google’s data analyzer and portal.
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