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Crypto analytics firm Santiment has suggested that a metric indicates decentralized oracle network Chainlink (LINK) may have more upside potential. Santiment also discussed the current state of Bitcoin (BTC).
Santiment’s Bullish Claims for LINK
Through social media platform X, the crypto analysis platform stated that even if there is a sudden drop in LINK wallets, Chainlink’s rise could continue.
According to Santiment, a sudden drop in wallets is often a sign of fear, uncertainty, and doubt (FUD), which could indicate an upcoming price increase. Santiment stated:
Chainlink surpassed the altcoin pack after creating the highest age consumed spike from previously dormant wallets (calculated by multiplying the number of days inactive crypto assets have been in motion by 5.38 billion). The return of LINK to the network’s circulation likely contributed to the price increase. Additionally, the network witnessed small wallet liquidations, a sign of FUD that could contribute to further price rises.
Potential Impact of BTC on LINK
At the time of writing, LINK has seen an approximate 12% increase over the last 24 hours, trading at $18.76. Santiment then suggested that the social dominance indicator, which follows crypto discussions on social media platforms, could show a downtrend for Bitcoin (BTC) and an uptrend for altcoins this week, stating:
Historical data indicates that a high rate of crowded discussion about Bitcoin is a sign of fear. However, since mid-2023, the enthusiasm and optimism surrounding ETFs (exchange-traded funds) have turned high BTC discussions into a greed indicator due to arguably unrealistic expectations for the markets. Three weeks after the SEC (U.S. Securities and Exchange Commission) approved Bitcoin ETFs, this indicator seems to have finally normalized. Altcoin discussions could push the ratio of BTC discussions into an unhealthy downtrend if February sees better performance from Bitcoin, implying that the crowd is once again overlooking tokens in favor of altcoins due to greed and over-leverage.
