Cryptocurrency analytics firm Santiment said one indicator suggests decentralized oracle network Chainlink (LINK) could have more upside potential.
In a new thread on social media platform X, a market intelligence platform: Called Even if LINK wallets suddenly drop, Chainlink’s upward trend may continue.
According to Santiment, a sudden drop in wallets is usually a sign of market capitulation due to fear, uncertainty, and doubt (FUD), which can indicate that higher prices may soon follow.
“Chainlink jumped ahead of the altcoin pack after some previously dormant wallets generated the highest age spend spike (5.38 billion, calculated by multiplying the number of coins moved by the number of days those coins were dormant). This influx of LINK into network circulation likely contributed to the price surge.
There have also been minor liquidations of wallets on the network, which is often a sign of FUD that can contribute to price increases.”
LINK is trading at $18.76 at the time of writing, up nearly 12% in the last 24 hours.
Next is Santiment. Called The Social Dominance indicator, which tracks cryptocurrency discussions on social media platforms, could be bearish for Bitcoin (BTC) and bullish for altcoins this week.
“Historically, a high percentage of crowd discussion about Bitcoin is a sign of fear. However, since mid-2023, the euphoria and optimism surrounding exchange-traded funds (ETFs) has turned high BTC talk into a greed indicator due to (perhaps) unrealistic expectations for the market.
Three weeks after the Securities and Exchange Commission (SEC) approved the Bitcoin ETF, the indicator appears to have finally normalized.
High altcoin discussion could push BTC discussion ratio into bearish ‘unhealthy’ territory if it outperforms the top market cap asset during the first week of February. Unlike the last two Bitcoin social dominance spikes, which heralded predictable peaks, the negative spike means the asset is once again being ignored in favor of crowds greedily overleveraging alternative portfolios once again. do.”
At the time of this writing, Bitcoin is trading at $43,140.
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