Bitcoin momentarily surged to $41.7k during the early hours of Wednesday. As a result, other top coins also registered sharp spikes on their respective charts. However, as the king coins price crawled back to $39k, the gains of other coins slowly started deflating as well. Nonetheless, Chainlink managed to stand apart, for there was not much gap between the wick and body of its latest candle.
Chainlink’s compelling trends
On the network P&L metric, Chainlink has already endured a long period of loss. As can be noted from the highlighted part in the snapshot attached below, most LINK tokens have been moved at a loss since the beginning of this year.
Now, if the south-bound spikes on the non-highlighted part are paid heed to, it can be noted that they’ve more or less been followed by sustainable price surges. Thus, it wouldn’t be wrong to speculate that Chainlink’s price has already bottomed out at this stage.
Parallelly, another intriguing circulation pattern has been noted of late. Before getting to that, it becomes important to first observe the past trends.
Since mid-September last year, the circulation has peaked and dumped thrice. On all occasions, Chainlink’s price did incline on the charts.
So, looking at the current pattern in formation, there is quite a high possibility that the Chainlink market is in a similar position now.
Zoom out a bit, Monsieur
Well, the long-term pattern offers an even more concrete trend. Almost every circulation peak has been followed by a price hike on the macro frame. This means that Chainlink might just be on the verge of stepping into a bull market. Highlighting the same in one of their recent reports, Santiment noted,
“That could be the sign of a bull market itself. Circulation increases, then a lag happens, and then the price grows.”
Chainlink’s prospects on the price chart have indeed been enticing of late. It has already registered three consecutive green candles. LINK also broke past its SMA yesterday and has been trading above it since then. At the time of press, Chainlink was valued at $13.88, up by 6% on the daily window.