Social sentiment surrounding Chainlink and its native cryptocurrency, LINK, has surged over the last 24 hours.
This was not surprising considering LINK’s price prospects, as well as Grayscale’s recent comments about Chainlink’s importance.
LINK price received a substantial discount over the last few months as liquidity exited the markets.
For context, the cryptocurrency tanked as low as $11.60 on Friday, which was equivalent to a 57% discount from its highest price point in 2025.
Interestingly, it’s low on Friday also marked the first time that LINK price was oversold since March this year. However, this was not its lowest price point this year.
That courtesy goes to the 10 October crash, which saw the price retreat as low as $7.9. Nevertheless, this latest price correction pushed LINK price to yet another retest of its long-term ascending support line.
LINK price previously bounced off the same support line on multiple occasions. Bullish expectations may thus stem from this retest, but it may not be the only reason behind the rising hype.
Grayscale Injects Confidence for LINK Investors
Investment management company Grayscale recently described Chainlink as an essential infrastructure for the tokenized segment.
According to Grayscale, the protocol’s unique position as an oracle services provider means it plays an essential role in the data pipeline for the decentralized world.
Grayscale’s statement about Chainlink highlights a potential reason why LINK could be one of the attractive coins to investors.
Especially now that crypto investors are looking for value cryptocurrencies to buy at recently discounted prices.
Moreover, Grayscale already has a Chainlink trust, through which it provides its investors with exposure to LINK.
Moreover, LINK was one of the cryptocurrencies with healthy ETF prospects, especially now that the ETFs narrative has been picking up the pace.
Aside from the improving market sentiment around Chainlink, the network has also been showing signs of health in key metrics.
Recent data revealed that Chainlink has been outperforming top networks including Solana in terms of development activity.
Can Chainlink (LINK) Demand Pull off Strong Recovery?
LINK was already up by over 7% from its lowest price point on Sunday at press time.
While this indicates that the bears eased off their assault, allowing for some accumulation, the state of demand will determine whether LINK will extend its recovery.
Interestingly, large order book flows did not demonstrate an eagerness to buy back among the whales.
Spot flows in this category were still in the red and the same case applied to derivatives positions. Overall spot flow data across exchanges reflected similar sentiments.
LINK spot outflows cooled down substantially in the last few days. However, they remained negative, indicating that demand for the cryptocurrency remained weak.
The derivatives segment highlighted similar observations. Open interest remained relatively subdued near the $510 million level, and their volumes were down by roughly 30% in the last 24 hours.
These data points suggest that the slight upside this weekend may lack follow-through. However, that will depend on the market’s mood this week.
The weak demand for LINK during the weekend suggests that investors remained cautious, especially in light of crushed demand over the last few weeks.
Analysts have been waiting for clear signs of a shift in market sentiment, hence the current uncertainty in LINK price prospects.