Here is why Chainlink is value testing if you happen to’re a retailer

Chainlink’s trading volume rose 110% in just 24 hours at the time of writing. Additionally, LINK, valued at $ 34.25, rose nearly 8% over the above period. The last time the altcoin rose to a new ATH ($ 36.95) was on February 20, when the crypto’s print-time price was less than 5% off the price on the charts.

Source: CoinMarketCap

How did that happen?

Well, when the price of Bitcoin began to rise, LINK was trading around the $ 14 level. Following that, it hit a high of $ 36.95 on February 20, 2021. Since then, the price has been between $ 25 and $ 32.54. Price / volume divergence (increasing price and trading volume) soon emerged as a growing problem for retailers.

As demand fell, the price fell by $ 35.45 on top spot exchanges like Binance, Huobi, and Coinbase Pro. However, the rally has grown stronger since then, and demand has become more stable since Ethereum’s new ATH. Although a significant portion of current investment in altcoins is flowing into DeFi tokens with a market cap of $ 50 billion, it is likely that LINK’s steady price movement will capture higher demand for altcoins, the rally of which is almost over.

The top altcoins in the top 25 saw an extended rally last week with double-digit returns. LINK’s returns over the past 24 hours suggest double-digit growth this week. Over 73% of the HODLers at LINK have been using it for less than a year and 97% of the HODLers are profitable.

Ideally, this signals that HODLing LINK has the potential to offer double-digit returns for a period of less than a year. For example, consider the following table:

Short-term ROI-LINK || Source: Messari

The ROI was observed to be over 10% in 30 days and over 85% in 90 days.

The short-term HODLing LINK has proven to be profitable for the retailer’s portfolio, and the risk is relatively low compared to mid-cap altcoins. In addition, the on-chain analysis would suggest that retailers’ sentiment is currently neutral for LINK.

The accumulation phase passed when the price was $ 27. The price is likely to rise and reach a new ATH, especially as the trading volume is steadily increasing and the HODLer distribution suggests a large concentration. Of LINK’s 79% large HODLers, 94% are profitable based on on-chain metrics. Ergo, while an increase in profitability can ultimately lead to a fall in prices, a rebound is likely to follow soon before the Alt is driven to another ATH.

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