- Chainlink’s price action has lagged that of Bitcoin and other altcoins.
- The sentiment among traders and investors about LINK has been negative.
- Chainlink’s total value secured has been a bit negative.
Chainlink price drifted upwards on Tuesday as a cheerful mood continued in the crypto market after Bitcoin soared. LINK price joined other altcoins in a rally as it jumped to a high of $7.44, the highest point since April 8.
LINK is still trailing Bitcoin
Chainlink is one of the biggest players in the blockchain industry. It is an oracle platform that competes with the likes of Band Protocol, Chronicle. and WinkLink among others. The network makes it possible for developers to connect off-chain data like asset prices to the on-chain. It is used widely by most of the biggest players in the industry like Uniswap and Aave.
Read more: How to buy Chainlink.
Chainlink price has severely underperformed Bitcoin this year. The token has jumped by about 33% this year compared to Bitcoin, which has jumped by more than 80%. Bitcoin is now hovering at its highest level since June last year.
A likely reason is that most market participants appear extremely bearish on the coin. This is according to the Weighted Sentiment tracked by Santiment. The index tracks actions in social media to determine whether participants are positive or negative on a coin. This sentiment ranges between 0 and 1, with 0 being not positive.
https://twitter.com/ali_charts/status/1645360078608912385
It is unclear why LINK’s sentiment and price action have been weak this year even as conditions in the decentralized finance (DeFi) industry improved. The total value locked in most chains has jumped. And as I wrote here, there is a likelihood that the industry will do well as American regulators crackdown on the industry.
A likely reason is that the total value secured in Chainlink has not grown in the past few months. As shown below, the TVS has moved sideways since June last year.
Still, the negative sentiment could push contrarian investors to Chainlink as they did in December. In most periods, contrarian investors tend to buy when others are fearful. This could be proven right if Bitcoin’s rally continues.
Chainlink price prediction
The daily chart shows that the LINK price has struggled in the past few months as sentiment about the coin wanes. It is consolidating at the 25-day and 50-day moving averages while the MACD and the Relative Strength Index (RSI) have moved sideways.
Therefore, there is a likelihood that Chainlink will remain in this consolidation phase for a while and then bounce back if Bitcoin remains solidly above $30,000.
