Chainlink (LINK) price closed last week in a dragonfly Doji candlestick after rebounding from the crucial support/resistance level above $9.3. The mid-cap altcoin, with a fully diluted valuation of $10.3 billion and a daily average traded volume of around $170 million, has been attempting to regain bullish sentiment in the past few weeks.
In the daily time frame, LINK price against the US dollar has formed a double bottom coupled with a bullish divergence on the Relative Strength Index (RSI). However, the altcoin could drop further towards $8, which was the initial bullish breakout level in October 2023.
Chainlink Investors Capitulate Due to Lack of Clear Midterm Outlook
According to on-chain data analysis conducted by Santiment, the Chainlink network has registered a decline of nearly 2k non-zero addresses in the past four weeks. The poor performance of both spot Bitcoin and Ethereum ETFs in the United States has significantly impacted the overall cash flow to the altcoin industry.
Although the US Federal Reserve signaled a potential interest rate cut on September 18, the market uncertainty over the upcoming elections continued to weigh down on bullish sentiments.
Market Sentiment and Social Media Dominance
LINK’s discussion dominance across social media is officially at its highest level of 2024. Combined with declining total holders, this is generally a bullish signal if markets stabilize in the upcoming week. The asset sits at $10.22, reflecting an 18% drop since its local top in August.
Silver Lining for LINK Performance
Despite the poor altcoin performance in the past five to six months, the Chainlink community has continued to grow robust networks around the world. In the past week, several DeFi protocols across different chains integrated with the Chainlink network to enhance future interoperability.
Notable Integrations with Chainlink Network
Some of the notable integrations made with the Chainlink network last week include Ambit Finance, Euler Labs, JOJO exchange, Tadle, and zkLend, among others. These integrations are expected to bolster the Chainlink ecosystem, providing a foundation for a potential recovery in LINK’s bullish sentiment.
The highly anticipated altseason is expected to materialize after the reversal of Bitcoin dominance, possibly in the fourth quarter or early next year. Additionally, the rate of Chainlink discussion across all social media platforms has spiked to an all-time high this year, which is considered a bullish signal if the market stabilizes ahead.
