Chainlink’s price has dropped after the US Fed decided to taper the interest rate hikes stepwise in 2022. Although the project has managed to remain invulnerable to the January 5th market crash, adverse negative crowd sentiment on 10th January impacted the LINK price action. As bulls faced a heavy rejection of around $27.88, the price dropped by 50% in just 15 days.
Though it failed to reach its true potential in the second of 2021, bulls have managed the price above $25. Despite a surge in LINK’s exchange reserves, the price maintained its price well above crucial levels. As the number of new addresses has been rising frequently along with maximum exchange outflows, we can expect a positive price action.
Will LINK Price Reach Up To Its True Potential In Q1 2022?
Chainlink’s (LINK) price gave up almost all of its gains in the recent market crash. In the meantime, the crowd sentiment has also dropped to its all-time low. Again this one could be a potentially bullish sign.
The asset lost half of its gains between 10th and 24th January. And it appears that the crowd predictably became negative toward LINK. The weighted social sentiments indicate that some major indications of FUD led to the price drop. Typically such instances catalyze the price action.
The above chart from the Cryptoquant has observed an exponential surge in exchange reserves of the coin over the past six months. In contrast, as the LINK price dropped to the historical bottom, there has been an increase in the number of coins leaving the exchanges. Especially, over the past week, there was a movement of tokens worth $147.99 million indicating retailers’ comeback.
Collectively, with the surge in the activity of new addresses, LINK price flipped the bearish divergence surging by 8.90% round the clock. In comparison to its previous bull cycles, with a slow and steady motion, the altcoin is anticipated to reach $50 in the next couple of months.
Source: https://coinpedia.org/altcoin/chainlink-3x-rally-is-obligatory/