The crypto market is experiencing corrections today as most of the major cryptocurrencies dip. Nevertheless, one iconic digital asset, Chainlink (LINK) continues to remain immune to this correction and has unexpected spiked 6% on the weekly chart. It’s an intriguing trend that many long-time cryptocurrency followers are paying close attention to, as LINK continues to defy traditional market corrections and head towards new heights yet again.
1. Link Soaring – Chainlink (LINK) Rallies 6%
Chainlink (LINK) The Sky’s The Limit
Chainlink, with its iconic LINK token, is currently enjoying a great surge in value. After starting the weekly period at just over $2.5 USD per token, the LINK has skyrocketed, reaching a maximum peak of over $2.60 per token. That’s a jump of over 6%, with the relative increase in price of these tokens seen in the past 24 hours alone being around 8%. With the market capitalization now topping $315 million USD, it’s clear that investors are recognizing the value of the LINK token.
The success of Chainlink is easy to see when looking at the features it offers users. LINK enables transactions to be securely conducted between users and third parties, providing real-life applications to smart contracts. It also links users to real-world data, protecting their data while maximizing the potential of those smart contracts.
LINK’s recent surge is a further sign that smart technology is gaining traction, and investors are embracing it. Chainlink has all the essential components needed for success, and it looks like it will continue to climb ever higher.
2. Market Sentiment Turning Bullish – Time for a Correction?
The markets are never static, but respond to the prevailing economic conditions. The winds of change have been blowing, and this has been reflected in the recent sentiment of the market. Many investors report being more bullish on the prospects of their markets, allowing more willing gains.
It stands to reason that with this shift in investor attitude, it might be time for a correction. With the markets becoming more favourable to bullish investors, the potential for capital windfalls is high. This could leave overly invested parties out of pocket if the market turns, and a correction would help protect the market from such a dip.
The signs to look out for when considering a correction are:
-
Price volatility: Market performance begins to fluctuate heavily, reflecting the ever changing sentiment.
-
Loss of confidence: Investor behaviour begins to change, with more people looking to take profits and exit the markets.
-
Lack of catalysts: The markets begin to show signs of a malaise, with little news to cause a sustained increase in market performance.
When the market shows these signs, it might be time to consider hedging against any future losses or investing in counter cyclical products. In any case, it is important to be aware of the quickly changing sentiment and ensure that your portfolio is appropriately positioned.
3. Chainlink Technical Analysis – Analyzing the Spikes
Chainlink’s recent bull run, beginning mid-November 2020, has quickly elevated it to one of the top 10 cryptocurrencies on the market. The recent price movements have spurred conversations about what data patterns and information can provide insights into its future movements. Analyzing the spikes in its technical charts can provide a better understanding of the current market sentiment.
- Weekly Averages: Chainlink had an average price of $11-13 USD during the week before its surge began. This suggests that buyers had strong confidence in the asset.
- Bull Flag and Resistance Lines: Following the spike, a long flag consolidation pattern was formed as the asset drove up to a resistance level. The uptrend was strong and continued.
As Chainlink advanced, its technicals gave a slight hint regarding the possibility of a pullback as volume decreased. However, it wasn’t until support levels were broken and prices fell below those averages that the markets realized the descending trend.
4. What Are The Factors Behind The Price Increase?
It goes without saying – prices of essential items have seen an increase in recent years. While these price hikes can make it difficult for many to make ends meet, it’s important to understand the factors behind the rise so that we can plan and budget effectively.
These are some of the main reasons why prices may change:
- Global Demand: A product with a high demand on the global stage will result in the suppliers increasing the prices. This is due to backers being able to gauge the demand and increase their rates accordingly.
- Political/Economic Factors: Revisions to the protective measures, changes in taxes, and the devaluation of the currencies can have an accumulation on the prices of the items.
- Market Conditions: Weather or seasonal changes that affect production and supply levels in the import markets can agency an increase in the costs.
- Cost of Production: Surging in the production cost is a reality that causes the retailer to charge more from the consumers.
- Inflation: Rising inflation from the economic actions made by the government is a key factor that has an impact on the costs of items.
Overall, having an understanding of the factors behind the price fluctuation of items is an effective way of managing our expenses and staying in control of our finances.
5. Looking Ahead – An Investment Opportunity in Sight?
As the markets remain uncertain, the future of investment opportunities may feel unreliable. But there are options available for those willing to perform their due diligence and research. With a bit of luck and proper knowledge, future returns could provide a significant gain. Here are a few areas of opportunity to be aware of.
- International business. Startlooking abroad for business options. Emerging foreign markets provide potential for upside but are accompanied by a number of risks.
- Investment in tech. Tech startups offer huge potential for growth and return on investment, but timing and selection remain key ingredients here.
- Real estate. Real estate investments can be done with a limited risk approach to minimize losses. However, timing and selection is still very important and performance should be monitored regularly.
There are many considerations that must be taken into account before proceeding with any investment. There may be difficult choices to make, and all investors should proceed with caution. But if done correctly, there is tremendous opportunity out there and it’s best to not miss out.
In conclusion, Chainlink (LINK) has seen an impressive 6% gain in the past week amidst a market correction, providing traders an opportunity to capitalize on current market conditions. With predictions for the cryptocurrency’s further climb, LINK may continue to be profitable and a good investment for the foreseeable future.
