LINK signals weakness is forming ahead as it was seeing more signs of over the past few days. however, this trend could be shifting as the crypto asset rebounded today alongside Ethereum and other major altcoins as we can see in our latest Chainlink news.
The introduction of Ethereum 2.0 that has a scheduled release in December, is the event that will boost this rally. There’s a strong chance that ETH’s ongoing break above $400 could mark a shift in the aggregated altcoin market. The shift could work in LINK’s favor but the cryptocurrency still has a way to go before it can even erase the losses which were created over the past few days.
Where will LINK trend next could depend on the sustainability of the ongoing ETH rally as any sharp retrace could strike a blow to the altcoins. One analytics company pointed out that chainlink is still seeing major spikes in development activity which is usually considered as a positive sign that bodes well for the asset’s price action. If this trend continues, the confluence of increased development activity and strength amongst altcoins could send it higher.
At the time of writing, Chainlink is trading up under 2% at a current price of $10.60. This marked a notable rebound from its recent lows of $9.80 which were set a few hours ago. The rebound from this level came about because of the strength seen by Ethereum. ETH surged from $380 to over $400 this morning with the rally coming about due to the announcement regarding ETH 2.0 launch in December. If ETH shows signs of more strength, more money could start rotating into altcoins and help sustain Chainlink’s tempered strength, despite that LINK signals weakness.
Analytics company Santiment explained in a tweet that chainlink’s development activity has been rising rapidly. They see this as a positive sign explaining that the cryptocurrency is fundamentally strong which could translate into technical strength:
“The development activity of LINK has been rising, according to the github data we track. Generally, when projects have an increase in their team’s true dev. rate as Chainlink has, it’s a positive sign for the asset’s sustainability & longevity.”
Where will Chainlink trend next could depend largely on Ethereum and the rest of the altcoin market.
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