Chainlink Set to Explode, What’s Driving LINK Price Up?

Chainlink (LINK) price closed last week in a dragonfly Doji candlestick after rebounding from the crucial support/resistance level above $9.3. The mid-cap altcoin, with a fully diluted valuation of $10.3 billion and a daily average traded volume of around $170 million, has been attempting to regain bullish sentiment in the past few weeks. 

In the daily time frame, LINK price against the US dollar has formed a double bottom coupled with a bullish divergence on the Relative Strength Index (RSI). However, the altcoin could drop further towards $8, which was the initial bullish breakout level in October 2023. 

Chainlink Investors Capitulate Due to Lack of Clear Midterm Outlook

According to on-chain data analysis conducted by Santiment, the Chainlink network has registered a decline of nearly 2k non-zero addresses in the past four weeks. 

The poor performance of both spot Bitcoin and Ethereum ETFs in the United States has significantly impacted the overall cash flow to the altcoin industry.

Although the US Fed signaled a potential interest rate cut on September 18, the market uncertainty over the upcoming elections continued to weigh down on bullish sentiments.

Silver Lining for LINK Performance

Despite the poor altcoin performance in the past five to six months, the Chainlink community has continued to grow robust networks around the world. In the past week, several DeFi protocols across different chains integrated with Chainlink network to enhance future interoperability. 

Some of the notable integrations made with the Chainlink network last week include Ambit Finance, Euler Labs, JOJO exchange, Tadle, and zkLend, among others.

The notable Chainlink integrations in the recent past almost guarantee near future recovery of LINK’s bullish sentiment. 

Moreover, the highly anticipated altseason will soon materialize after the reversal of Bitcoin dominance, possibly in the fourth quarter or early next year. Additionally, the rate of Chainlink discussion across all social media platforms has spiked to an all-role high this year, which is considered a bullish signal if the market stabilizes ahead.