- Chainlink’s LINK has recently staged a 40% rally, becoming one of the best-performing altcoins in the market and garnering great investor interest.
- Experts have pointed to technical market dynamics and developments around real-world asset (RWA) tokenization as catalysts for the rally.
Chainlink (LINK) has been one of the best performers since the start of the year. In recent weeks, the altcoin has gained nearly 40%, becoming one of the best performers in the cryptocurrency market. In a new video, Wolf of All Streets, Scott Melker, in discussion with Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, has sought to explain the reasons behind the recent surge.
At the center of the recent surge is increased investor interest. As Hougan pointed out, the surge is an indication that more investors are buying LINK. Specifically, whales have been driving demand for the altcoin. Scott Melker revealed that there was increased buying pressure, stating:
It seems that the whales are buying. There has been a $50 million whale purchase that must have shot up the price.
This simple economic driver of supply and demand has in the past been a key driver for market movements in the cryptocurrency space. As more investors, specifically whales, take an interest in a token, this triggers a wave of retail investors flocking to get in on the action.
The experts further pointed out the technical market dynamics that have set up the altcoin on a bullish path in recent weeks. Furthermore, LINK has enjoyed significant price movement due to the broader narrative of real-world asset (RWA) tokenization. Chainlink is expected to dominate the industry by tokenizing physical and traditional financial assets, such as currencies, commodities, equities, and bonds, into digital tokens. This is a key use case for blockchain technology that could attract mass adoption and billions of dollars in investment.
Chainlink (LINK) Forges Bullish Path
At the time of writing, LINK is trading at $18.35 after a retracement of nearly 3% in the last 24 hours. However, the altcoin has still retained a positive gain of nearly 2% in the last 7 days. With a market cap of $10.7 billion, the 12th-ranked cryptocurrency is hoping to forge a bullish way to get to the top ten ranked cryptocurrencies, one of the most prestigious positions for any project.
Looking ahead, experts foresee even greater gains, with on-chain analyst Ali predicting a 38% surge once the altcoin breaks above $20. The analyst explains that about 5,330 addresses hold over 8.59 million tokens. Some investors might look to take a profit if the $20 resistance is broken, but if it is, the next key resistance is around $26.87.
#Chainlink faces stiff resistance between $19.40 and $20.03, where 5,330 addresses hold over 8.59 million $LINK. But if #LINK can break through this supply wall, the next critical area of resistance is around $26.87, representing a 38% price increase! pic.twitter.com/g34fryPll5
— Ali (@ali_charts) February 5, 2024
Despite impressing in recent weeks, LINK is still more than 50% below its all-time high of $52.70, reached about 3 years ago. Investors are optimistic that in the next bull market, expected this year, the altcoin will revisit this level.
