- Chainlink is trending upwards and was able to hit a new all-time high of $10.3
- Regardless, mutiple fundamental and technical indexes are flashing sell signals across the board
- A spike in the selling pressure behind LINK could see it pull back to $8 or lower
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Decentralized oracles token Chainlink stole the crypto spotlight after outperforming most digital assets this quarter. Despite new all-time highs, different on-chain and technical metrics show that LINK is ready to retrace.
LINK’s Social Engagement Metrics Explode
Chainlink’s recent upswing turned heads, especially considering that many traders thought LINK was already overbought. Data reveals that the number of LINK-related mentions on different social media networks surged dramatically. The numbers suggest the market has entered FOMO around Chainlink.
The rising chatter around the decentralized oracles token allowed it to move to the number one spot on Santiment’s Emerging Trends list. Nonetheless, the high level of notoriety is not necessarily a good sign, according to Dino Ibisbegovic, head of content and SEO at Santiment.
The analyst maintains that when the crowd pays increased attention to a cryptocurrency in line with pumping prices, then that movement is usually followed by a steep correction.
“Within the next 12 days after a coin claims a top 3 position on our list of Emerging Trends, its price drops by an average of 8.2 percent. Based on our study, once the increased crowd attention subsides (which usually happens in a matter of hours/days), a short-term price correction—or consolidation—is often a likely outcome,” said Ibisbegovic.
Indeed, LINK’s uptrend appears to have reached exhaustion after investors became overwhelmingly bullish about its price action. Since the peak, this cryptocurrency is down nearly 3.7%, and a widely known technical index estimates that it could…