Chainlink has been showing signs of weakness throughout the past few days, but this trend may be shifting as the cryptocurrency rebounds today alongside Ethereum and other major altcoins.
The introduction of Ethereum 2.0 – with a scheduled release in December – is the event that is driving this rally. There’s a strong possibility that ETH’s ongoing break above $400 could mark a shift in the aggregated altcoin market.
This shift could work in Chainlink’s favor, although the cryptocurrency has a way to go before it can erase the losses it has seen over the past few days.
Where it trends next may depend largely on the sustainability of this ongoing ETH rally, as any sharp retrace could strike a serious blow to altcoins.
One analytics firm pointed out that Chainlink is still seeing large spikes in development activity, which is a positive sign that typically bodes well for an asset’s price action.
If this trend persists, the confluence of heightened development activity and strength amongst altcoins could send it rocketing higher.
Chainlink Attempts to Form a Long-Term Bottom as Bulls Step Up
At the time of writing, Chainlink is trading up just under 2% at its current price of $10.60. This marks a notable rebound from its recent lows of $9.80 set just a few hours ago.
The rebound from this sub-$10.00 dip came about due to the strength seen by Ethereum.
ETH surged from $380 to over $400 this morning, with this rally coming about due to an announcement regarding Ethereum 2.0 launching in December.
If ETH shows signs of continued strength, money could begin rotating into altcoins and help sustain Chainlink’s tempered strength.
LINK Development Activity Remains High
Analytics firm Santiment explained in a recent tweet that Chainlink’s development activity has been rapidly rising.
They interpret this as a positive sign indicating that 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.”
Image Courtesy of Santiment.
Where Chainlink trends next should depend largely on Ethereum and the rest of the altcoin market.
Featured image from Unsplash. LINKUSD pricing data from TradingView.