Reasons Behind Chainlink (LINK) Price Recent Breakout, Can It Go Higher?

LINK, the native cryptocurrency of Ethereum-based decentralized blockchain oracle network Chainlink, has seen a price breakout fueled by strong on-chain activity and growing investor confidence.

An analysis by blockchain intelligence platform Santiment revealed that LINK’s technical indicators suggest there is potential for continued price gains and that the asset’s long-term outlook remains positive.

Positive sentiment around Chainlink

According to Santiment, the Chainlink community views the network as a key player in the altcoin market due to its decentralized oracle technology. Community members view the project as one that could drive innovation in the blockchain space and bridge the gap between on-chain smart contracts and off-chain data sources. As a result, the social media narrative around LINK’s potential is enthusiastic.

“It remains to be seen whether the project will fully meet these high expectations, but the community’s confidence in the project continues to play an important role in its continued presence in the market,” Santiment said.

LINK currently ranks 14th on the list of top crypto assets by market cap. Over the past few days, the cryptocurrency has gained 10.2%, driven by increasing accumulation from whales and large investors.

Risks and additional upside potential

The number of whale transactions worth $100,000, $1 million, and more is on the rise, highlighting the interest of high-net-worth individuals and institutional investors in Chainlink. On-chain data shows that holders of massive amounts of LINK have been aggressively accumulating the token over the past few weeks.

As of August 15, wallets holding one million or more LINK collectively held 685.5 million tokens. However, their stash had grown to 694 million at the time of writing, indicating an increase of 8.5 million coins in about six weeks. Santiment said this growth is one of the fastest in three years of Whale coin accumulation.

Additionally, Chainlink has seen significant performance against Bitcoin, with LINK outperforming the leading crypto asset by 8.8% during its latest rally.

Interestingly, both Chainlink’s short-term and long-term market value-to-realized value ratios are currently in negative territory, indicating that LINK still has upside potential and that there is still plenty of room for growth for the asset.

However, Santiment warned investors to exercise caution as LINK could slide into slightly risky territory while recording average returns in the short term.