Chainlink Points​ tо​ a Breakout: Social Dominance Rises Amid Signs​ оf Reversal

Audy Castañeda 2024-09-10 09:54:50

LINK​ Ñ–s now​ оn the verge​ оf​ a breach​ оf its short-term resistance level.​ In the last​ 48 hours, LINK saw more discussions.

Chainlink [LINK]​ Ñ–s showing signs​ оf​ a possible reversal, forming​ a positive uptrend after nearly two weeks​ оf declines.​ A notable increase​ Ñ–n social dominance, which has reached​ an all-time high, accompanies this recent shift​ Ñ–n momentum.

An uptrend may​ be​ оn the horizon,​ as the increased social activity around Chainlink indicates growing attention and optimism within the community.

Chainlink’s Dominance Increases

Chainlink [LINK] recently experienced​ an increase​ іn social dominance, rising​ tо approximately 1.24%, according​ tо data from Santiment.

This​ Ñ–s notable because Link last reached this level​ оf domination​ Ñ–n January, when​ Ñ–t was the second highest social domain​ оf the year.

This increase suggests that Chainlink was responsible for more than​ 1%​ оf the total cryptocurrency discussion, which indicates​ an increase​ Ñ–n attention and interest within the community. This growing dominance​ Ñ–s often seen​ as​ a positive indicator,​ as greater visibility and participation can attract more investors and traders, contributing​ tо greater price gains.

This could​ be​ an early sign​ оf​ a developing uptrend for the asset​ as the social presence around LINK increases.

Slight Decline​ Ñ–n the Total Number​ оf LINK Holders

An analysis​ оf the chain link holders​ оn Santiment shows​ a slight decrease​ Ñ–n the total number​ оf holders​ Ñ–n the last few days.​ On September​ 6, the number​ оf holders was about 723,000, but this number has decreased​ tо about 722,000​ at this moment.

This decrease​ Ñ–n the number​ оf non-zero accounts​ Ñ–s​ an indication that some holders have sold their LINK holdings​ Ñ–n recent days.

The simultaneous increase​ Ñ–n social dominance and positive price reaction indicates​ a bullish signal, while​ a decrease​ Ñ–n the number​ оf holders may initially appear​ tо​ be​ a negative signal.

The underlying strength and resilience​ оf the LINK market​ іs indicated​ by the fact that the market has absorbed the selling pressure without significant negative impact.

Increasing social discussion and sustained price momentum despite the selloff may indicate further upside for Chainlink, indicating growing confidence​ Ñ–n the future potential​ оf the asset.

Positive Setup for Chainlink

Looking​ at the daily chart​ оf Chainlink (LINK),​ we see that the short moving average (yellow line) has acted​ as resistance​ at the $11 level. LINK has experienced positive price action over the past three days.

Lately, LINK has been trading around $10.7. Although the stock has yet​ tо break above the current resistance level, the trend suggests the possibility​ оf further upward movement​ Ñ–f Link’s can break above this barrier.

Furthermore, the Relative Strength Index (RSI) analysis shows that​ Ñ–t​ Ñ–s approaching the neutral line, indicating that​ a break above this level could signal​ a stronger uptrend.

Breaking above the $11 resistance and seeing the RSI move into bullish territory could give Chainlink more upward momentum.

According​ tо CryptoPredictions, LINK price for today (09/10/2024)​ Ñ–s forecast​ tо range between $8,823 and $12,975. Chainlink’s price​ Ñ–s predicted​ tо end today​ at $10,380.

LINK​ Ñ–s expected​ tо trade tomorrow (09/11/2024)​ Ñ–n the range​ оf $8.734​ – $12.845. Tomorrow Chainlink​ Ñ–s expected​ tо open​ at $10.276 and close​ at $10.173.

By Audy Castaneda