Chainlink: Can bears spark another rally after this significant milestone

• At press time, Santiment showed that LINK weighted sentiment was -0.781.
• LINK, in the current market condition, was undervalued. 

Despite being a leading decentralized oracle network, Chainlink [LINK], has experienced price fluctuations over the past few weeks, with both bullish and bearish trends impacting its performance. Nonetheless, the token has been able to garner a 20% uptick in the last 30 days.

Read Chainlink’s [LINK] Price Prediction 2023-2024

The romance in contrasting sides

However, the hike in value has not been able to alter the discernment many investors have toward the token. At press time, Santiment showed that LINK weighted sentiment was -0.781. The metric gauges the social discussions around an asset, taking into account the positive and negative opinions towards it.

Since the weighted sentiment was negative, it implied that the average aura around LINK wasn’t necessarily bullish. 

Source: Santiment

But with perception mostly negative, LINK was able to rise to $7.61 by mid-February. So, is there a chance that the December price action repeats itself? 

Looking at the technical indicators, it was found that the On-Balance-Volume (OBV) stood at 233.86 million. The indicator measures buying and selling pressure based on the daily volume to evaluate price projections. 

At the time of writing, the LINK OBV closed higher as the price followed an upward trend. Since they were both making higher peaks and troughs, it is likely that LINK will attempt to maintain a rally.

Maybe the Bulls have it?

With respect to the Moving Average Convergence Divergence (MACD), the daily chart showed that the bulls and bears were in a battle to control the momentum. This outcome was derived from the blue and orange dynamic line hovering around the same spot.

Source: TradingView

Furthermore, the Chaikin Money Flow (CMF) had left the negative region as it peaked at 0.06. When the CMF rides below zero, it means that money flow had been hindered. But when it crosses above, it indicates a consistent flow of liquidity into an asset.

How much are 1,10,100 LINKs worth today?

For LINK, the CMF crossed the zero line from below, Hence, there is a chance that it continues an uptrend. But traders might need to watch out for false signals since the indicator was below 0.5.

As per on-chain data, it seems that LINK was currently priced at a discount based on the Network Value to Volume (NVT) signal. Low NVT signals have historically acted as opportunities to accumulate. Oftentimes, they tally as an asset bottom. Therefore, the current LINK condition might offer long-term holders a buying chance.

Source: Glassnode