ChainLink (LINK), the decentralized oracle network that bridges smart contracts with real-world data, has made headlines in the cryptocurrency space as it recently broke through its monthly resistance level, setting new price targets and sparking investor interest. The fresh surge came after Ethereum’s Shanghai upgrade went live on 12 April, pushing the altcoin and DeFi market to the North. As ChainLink’s market performance defies expectations, investors are waiting for LINK price’s upcoming trends.
ChainLink Flashes Bullish Signals
ChainLink’s recent surge can be attributed to a multitude of factors, including positive market sentiment and the growing adoption of decentralized oracle networks. As the demand for secure and reliable data feeds in smart contracts continues to grow, ChainLink has placed itself as a dominant force in the sector, attracting attention from both retail and institutional investors.
According to recent data, ChainLink investors have displayed a sense of pessimism, a sentiment that could surprisingly result in a bullish outlook for the digital currency. In brief, on-chain crypto firm, Santiment’s “Weighted Sentiment” is a crucial indicator that reflects the overall sentiment surrounding a specific coin.
It combines two metrics: the Sentiment Score, which gauges the positivity or negativity of investor discussions, and the Social Volume, which measures the quantity of unique social media posts discussing the asset. By weighting the Sentiment Score with the Social Volume, the Weighted Sentiment is obtained, revealing significant shifts in sentiment when the Social Volume is high.
Over the past few weeks, ChainLink has experienced notably high negative values in its Weighted Sentiment, indicating a significant amount of pessimistic conversation surrounding the asset.
Interestingly, the market’s bearish outlook on LINK might actually prove to be a bullish signal for its price. This counterintuitive phenomenon occurs when sentiment reaches an extreme, making it more likely for the price to defy the majority’s expectations.
Will LINK Face Rejection Near This Level?
Technical analysis of LINK’s price reveals that the token broke through its monthly resistance level of $7.6, a significant milestone that typically signals a bullish trend. LINK price is currently strengthening its upward potential with increased demand and buying pressure.
As the overall crypto market is currently on a bullish rally, LINK’s bulls may push the price further. If demand continues to stay positive, the bulls may endeavor to drive up the LINK price. However, LINK may face two critical resistance levels, and its performance hinges on the altcoin market’s trajectory, which in turn relies on Ethereum’s ability to maintain a trend above $2K.
At the time of writing, the LINK price is trading at $7.75, reflecting a more than 4% increase in the past 24 hours. If the LINK price surpasses the $7.8 mark, it may sustain its bullish momentum and potentially encounter resistance near $8. However, following a modest retracement to the 23.6% Fibonacci level, the LINK price may gather sufficient strength to surge higher.
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