Massive Gains For LINK Possible – 3 Reasons Why

Massive Gains for LINK Possible
Massive Gains for LINK Possible

PATNA (—Chainlink’s token LINK has lined up some bullish cues that could likely result in massive gains for traders. However, the resulting rally could pose traders with a different kind of problem; the gains might catch the attention of long-lost exes who had their doubts about traders’ skills in the market and bailed at an earlier opportunity.

For instance, there might be traders who suddenly found themselves single after investing their entire savings in LINK in early 2022. After that, the token took a massive dive and traded with single-digit price tags for quite a while. Investing heavily in the Chainlink token would have been quite the test for relationships all over the world.

But LINK has its investors’ backs like a true friend.

Massive Gains for LINK, Massive Gains For LINK Possible – 3 Reasons Why

CoinShares’ Digital Asset Fund Flows report highlighted an interesting trend in LINK-based investment products.

Chainlink Bullish
Digital asset fund flows weekly report. Source: CoinShares.

In a year that has seen Bitcoin-related funds suffer significant outflows, LINK funds have outshone bigger tokens like ETH.

Investors showed interest in Chainlink with a $26 million YTD inflow. The growth highlights Chainlink’s appeal among investors, with recent innovations like CCIP and Transporter attracting buyers.

However, the inflow remains modest compared to Bitcoin’s $13.6 billion, indicating less confidence in Chainlink’s short-term growth. Yet, the project has performed better than Ethereum, which has negative inflows in 2024, suggesting some resilience.

Though Chainlink’s small AUM of $49 million highlights the project’s niche player status, growing investor interest could help the project grow.

LINK price has been on a bullish rally since May 15, spiking nearly 36% to reach a daily high near $17.45 on May 21 before profit booking pared some of the token’s gains. Interestingly, Spot Ether ETF speculations failed to revive the LINK price rally on May 21.

Chainlink Bullish
LINK price action for the last seven days. Source: CoinStats

The partnership between Chainlink Labs and Arta TechFin would see the latter integrating a full suite of Chainlink services to enhance its offerings, particularly in stablecoin issuance, real estate token issuance, and other verticals.

Chainlink Bullish
Chainlink has partnered with Arta TechFin.

The partnership would unlock new use cases in tokenized real estate and stablecoins by bringing various key asset data on-chain and across different blockchains.

Chainlink will likely attract more financial institutions and large enterprises by providing comprehensive end-to-end solutions for digital assets, driving increased adoption. This could present a bullish cue, and could lead to massive gains, for the LINK token.

Additionally, by focusing on regulated, interoperable fund tokens and aligning with regulatory frameworks, Chainlink establishes itself as a trusted provider in the financial industry.

Regulatory alignment can help increase institutional adoption, solidifying Chainlink’s market position. Moreover, an improved regulatory position could strengthen the bullish cues for the LINK token.

Meanwhile, Chainlink’s growing funding rate indicates an increasing number of traders taking long positions, expecting the price to rise. This rise in long positions suggests a positive market sentiment, as traders are willing to pay a premium to hold their positions.

As the funding rate increases, the cost to maintain short positions also rises, which may pressure short-sellers to close their positions, potentially driving the price higher.

Chainlink Bullish
Chainlink OI-weighted funding rate. Source: Coinglass

Additionally, a higher funding rate reflects a general bullish sentiment among market participants. This sentiment can attract more buyers and investors to LINK, contributing to upward price movement.

However, while a growing funding rate shows optimism, it does not guarantee a price increase, as market dynamics can shift. Therefore, it’s important to consider other market factors and indicators when assessing LINK’s price trajectory.

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