The broader cryptocurrency market is experiencing significant price drops.
Despite this, Chainlink's price has remained stable and even increased by 2% in the last 24 hours.
According to insights from Santiment and IntoTheBlock, there is currently a high win-loss ratio for Chainlink traders, coupled with highly strong holder metrics.
Technical analysis shows that Chainlink is poised for a rebound from $16.5, as well as a 35% price increase to $23.
Chainlink's strong correlation with Bitcoin might be a major issue though, considering the general market decline
The general crypto market is running at complete reds.
We have cryptocurrencies like Bitcoin and BNB down by 4% on the daily timeframe. Others like Solana, Cardano, Avalanche and Polkadot are nursing even worse wounds, with more than 5% declines over the last 24 hours.
However, despite this bloodbath, Chainlink seems pretty unaffected, considering its ongoing 2% price increase over the last 24 hours.
It so happens that according to insights from Santiment, there might be a good reason for this behaviour from Chainlink, and major on-chain indicators are flashing wildly bullish signals, this week in particular.
According to new insights from the on-chain data analytics platform, Santiment, Chainlink has pretty much decoupled from the rest of the market, as we have seen.
Santiment noted the current price of the cryptocurrency, and how it has managed to surge past the $17.5 mark for the first time in the last six weeks.
However, this isn’t even the most bullish part of the cryptocurrency’s outlook.
Santiment noted that Chainlink for every single $LINK transaction running at a loss, 11 transactions are dunning at profits.
Chainlink’s on-chain metrics
This shows a staggering 11:1 win-loss ratio for Chainlink, and if Bitcoin had similar metrics at the time of writing, we might be well into the actual bull run, several times over by now.
Santiment went further to mention that this 11:1 ratio is the highest that Chainlink has ever enjoyed—Since 8 December 2022.
Chainlink’s token summary
Analytics from IntoTheBlock further adds to this bullish outlook.
According to the data aggregation platform, a staggering 62% of Chainlink traders are in profit, as opposed to 32% running at losses.
Moreover, the whales also appear to have taken an active interest in the cryptocurrency, considering how most of the holders (70%) are sharks and whales, and most of them (74%) have held their tokens for more than a year now.
The only issue with Chainlink now is its 93% correlation with the price of Bitcoin, which might be one of the biggest hindrances to a major price surge.
According to the charts, Chainlink broke above the $16.5 resistance recently, and has spent the last week or so, in a post-breakout consolidation as illustrated:
Chainlink’s price action
Notably, this $16.5 level closely aligns with the 61.8% Fibonacci retracement level, which has been an attractive accumulation zone for large investors so far.
Per the charts, we can see that the cryptocurrency is attempting a rebound from this price level, and is aiming for a break above the $17.5 price level, beyond which it is expected to start the real rally.
Chainlink from here, is poised to continue upwards and hit the $23 mark or even higher, in what would be a 35% price increase.
Chainlink’s price outlook
It should also be noted that the cryptocurrency needs to stay above this $16.5 price level because a break below would constitute a head and shoulders pattern, and effectively trigger a decline straight down to $12 once again.
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