LINK will soon reach a new ATH when it enters 2022

Chainlink achieves a significantly higher level of acceptance than other chains. But unfortunately the price movement of the native token LINK is not that good and the damage to investors is becoming more and more apparent.

LINK price active in downward trend

Over the course of 2 months, LINK has moved further and further away from ATH, hitting a local low of $ 17.7. The 22% rally on December 21 was all but weakened. This is because the market fell 2 days ago while LINK lost 14% in 48 hours.

Until at least 2 months ago, the price was still testing the critical support at $ 35. This level is basically not only the determining factor of the rally, but also the sentiment level. Don’t expect the price to create a new ATH until it becomes a support.

Price campaign LINK | The source: Trade view

At the moment, testing $ 35 even seems like a tough target this year. As a result, investor confidence and optimism appear to be waning.

Prices fell sharply on December 28th, causing them to react in the most negative way in almost 2 months. Before that, they were a bit optimistic when LINK was around $ 25 despite network-wide losses.

Investor sentiment LINK | Source: Santiment

Therefore, these investors decided on HODL until a suitable exit point was apparent. The reduced speed is an example of this.

And although the loss is now down 6%, there is still around 50% of investors who have lost money since the beginning of the month. Out of that 50%, there are 16.6,000 addresses in particular that have been worst in the last 6 months as they were purchased when LINK was at 52.3 ATH.

LINK investors lose money | Source: Intotheblock

Fortunately, however, the majority of the LINK offering is dominated by HODLer. They held the asset from 1 month to over 1 year which is 95% of the total supply, more than most other altcoins.

Distributing investors LINK | Source: Intotheblock

As long as LINK has the support of investors, it is still possible to increase the price before the end of January 2022. In addition to recapturing the $ 25 mark, LINK is expected to get closer to flipping $ 35 in support.

The head of the Coin Bureau believes LINK will soon meet ATH

The moderator of popular crypto channel Coin Bureau said that LINK’s price action is still bullish despite some rough months.

In one Video Coin Bureau host Guy said LINK was a “hot” altcoin in early 2021, but it cooled off in the second half of the year.

“Despite all the announcements, partnerships, updates and developments from Chainlink, the price of LINK has only increased by 50% since the beginning of 2021. That’s a lot less than any other cryptocurrency, and even some stocks.

So what’s the point

For those who don’t know, LINK is a DeFi token.

DeFi got hot in 2020 and early 2021, but the hype has disappeared in the last six months. ”

Guy also pointed out that the Chainlink team was putting a lot of selling pressure on the oracle altcoin.

“Team Chainlink has sold millions of LINKs to fund ongoing operations and future expansion.

Back then (before the team started selling LINK) the circulating supply was around $ 400 million. Today the amount in circulation is up to 467 million.

Assuming the average price is around $ 20, revenue equates to over $ 1.3 billion in pressure to sell. It’s a loss of mind. ”

Guy then explains that these selling pressures are good for long-term price action, but detrimental in the short term.

Source: Tradingview

Another reason for the relative underperformance of LINK is the state of “speculative investments”.

“The primary use case of LINK is to pay for decentralized feeds, which are required for almost every decentralized application (Dapp) to function.

Theoretically, this leads to more demand for LINK, which drives up the price.

In reality, however, this feature is gradually being eclipsed as LINK is not a legal currency.

As a result, the LINK that was used to pay for the feed is sold by the node operators, and this selling pressure offsets the buying pressure of the Dapp who originally bought the LINK.

At the moment speculative investments are the only demand driver for LINK, and it looks like many private investors have put money into other assets. ”

Despite the frantic selling pressure and a decline in retail funding, Guy still believes LINK will soon hit a new all-time high.

“LINK is still in a clear upward trend, in contrast to many other cryptocurrencies that have not fully recovered from the massive crash in May.

If this upward trend continues, LINK could hit a new all-time high in the coming months, provided the bull market continues. ”

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page