One on-chain LINK analyst explained why Cardano is currently in a “parabolic advance” compared to other assets. The crypto market saw a lot of activity over the past week from altcoins such as ADA, Vechain, and COMP, all outperforming Bitcoin by dozens of percent as we reported previously in our Cardano ADA news.
Some hot altcoins even found a top as COMP dropping 50% from its all-time high and ADA’s rally stopping at $0.14. however, there is one on-chain LINK analyst that says the altcoin will buck the trend according to technical and on-chain evidence indicating LINK is in “parabolic advance.” According to Cole Garner, the analyst is in the midst of a “full-blown parabolic advance” after setting a new high in the past few days.
Looking at the latest LINK price action and the bull run in 2019, the analyst suggests that the cryptocurrency still has room to rally by about 50% against Bitcoin. The positive sentiment is corroborated by the on-chain data, exchange, and sentiment signals such as:
- Link’s mean dollar invested age dropping down. Once this metric goes down, the altcoin proceeds to rally
- – The number of altcoins on exchanges traded lower in the past two years decreasing selling pressure
- The order book on Binance shows that investors are “skewed long.”
- LINK’s on-chain volume is still at bubble levels
Despite the signs, not everyone believes Chainlink’s rally is sustainable. Blockchain analytics firm Santiment reported that LINK’s market value to realized value is at an all-time high. This has been exacerbated since then as the altcoin continued increasing. This indicator at high levels indicates that almost everyone holding LINK is in profit which is a dangerous trend. Right after Santiment released this data, Glassnode found $15 million worth of LINK being sent to Binance in 5000 different transactions.
The issue with the MVRV indicator is that it assumes a huge portion of investors will take profit on their trades. Bitcoin and other cryptocurrencies for example often get investors that are willing to hold rendering the MVRV indicator moot. Chainlink is now ranked #12 by market cap and it has increased by 4.69% in the past 24 hours. LINK has a market cap of $2.17B with a volume of $933.3 million in 24-hours.
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