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Since the latest price surge, LINK-powered initiatives have gained backing from a number of influential individuals. According to coinmarketcap.com, the market capitalisation was $21.9 billion at the time of trading at $21.39 per coin. Based on prior cases, LINK’s price has regularly rallied following quad witching and option expiration.
According to the Coinmetrics data above, the price of LINK is unlikely to rebound until next week. According to statistics from intotheblock, the concentration of big HODLers has surpassed 75%. Furthermore, as concentration grows, the fraction of HODLers who are profitable at the current price level grows. Following a rebound from a slump, the percentage of profitable HODLers has steadily grown.
This pattern initially appeared in March of 2020, and it continued for nearly a year in a row. This trend is concentrated on option expiry, despite on-chain indicators indicating that the narrative was positive based on active traders and trading volume.
However, despite new alliances and improvements, LINK’s price has plummeted along with other alts in the current crash. If the price continues to fall, it may go below the psychologically significant $20 threshold. The current pricing is still halfway to the lowest price for LINK in the last 8 weeks. Because there is little buzz surrounding DeFi right now, LINK’s price is expected to fall more.
A decrease in DeFi’s total TVL is expected to lead to more LINK consolidation. Simultaneously, ETH’s rising strength, volatility, and price rise are expected to have a favourable influence on the price of LINK. At a time when sidechains are overvalued, LINK was discounted.
Traders who have held LINK for less than a year may want to consider hedging their position to hedge against the decline, as well as accumulating while LINK consolidates. Long-term, it is a positive story for LINK since the recovery is projected to be substantial, in line with the trend. LINK is expected to follow, while ETH will likely lead the second cryptocurrency surge in 2021.