At the time of publication, Chainlink’s trading value had increased by 110 percent in just 24 hours. Furthermore, Connection was up nearly 8% in the aforementioned time frame, priced at $34.25. The altcoin last spiked to a fresh ATH ($36.95) on February 20th, with the crypto’s press time price less than 5% down from the same on the charts.
How did this come to be?
When Bitcoin’s price began to rise, Connection was selling around the $14 mark. Following that, it reached a high of $36.95 on February 20, 2021. Since then, the price has fluctuated between $25 and $32.54. Price/volume difference (increasing price and trading volume) quickly became a rising source of concern for retail traders.
As demand fell, the price fell from the $35.45 mark on top spot exchanges such as Binance, Huobi, and Coinbase Pro. The rally, on the other hand, has since become higher, with demand becoming more consistent since Ethereum’s latest ATH. While a large portion of the current investment inflows into altcoins is geared into DeFi tokens with a market capitalisation of $50 billion, it is possible that LINK’s consistent price behaviour captures higher demand than altcoins whose rally is nearing an end.
Top altcoins in the top 25 have had an extended rally over the last week, promising double-digit returns, and LINK’s returns in the last 24 hours indicate that it is primed for double-digit growth this week. About 73% of LINK’s HODLers have owned it for less than a year, and 97% of HODLers are profitable.
Ideally, this indicates that HODLing Connection for less than a year has the ability to have double-digit returns. Have a look at the map below, for example:
The ROI was found to be more than 10% in 30 days and more than 85% in 90 days.
HODLING Connection in the short term has proved lucrative for the retail trader’s portfolio, and the cost is smaller as compared to altcoins of medium to low market capitalisation. Furthermore, the on-chain review suggests that traders’ sentiment against Connection is currently neutral.
When the price was about $27, the accumulation process ended. The price is likely to rally and reach a new ATH, particularly because trade volume is gradually growing and HODLer distribution indicates a high concentration. According to on-chain metrics, 94 percent of the 79 percent major HODLers of LINK was profitable. As a result, though rising profitability can inevitably lead to a price decline, a quick rebound is possible before the alt reaches yet another ATH.
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