Chainlink (LINK) Price Analysis: Bulls Return as the Token Eyes the $50 Mark

After a major dip last week, Chainlink [LINK] once again gained bullish momentum over the last 24 hours. However, this just might not be the effect of changing market conditions, but the beginning of a bigger bull run.

After a 16% price drop last week, Chainlink bulls stepped in and pushed the token's price up by over 7% in the last 24 hours. At press time, LINK was trading at $24.84 with a market capitalization of over $15 billion.

World Of Charts shared a tweet highlighting an interesting development. According to them, LINK might offer investors another chance to buy the token at a discounted rate. If the support level retest is successful, Chainlink could be retesting a support level, which might pave the way for a rally towards $50.

Meanwhile, Spot On Chain's latest tweet revealed that Chainlink unlocked another 11.25 million LINK, which is worth over $258 million. Out of this, 10.625M LINK, valued at $243.5 million, was sent to Binance, and 625K LINK, worth $14.4 million, was sent to the multi-sig wallet "0xD50."

Is LINK preparing for $50?

To assess whether Chainlink is beginning its journey to $50, AMBCrypto checked the token's on-chain metrics.

Surprisingly, despite the altcoin's bullish price action, market sentiment around the token turned bearish. This was indicated by the decline in Chainlink's weighted sentiment. Nevertheless, its social volume remained somewhat stable last week, underscoring its popularity in the market.

At press time, one metric that was looking promising for LINK was its withdrawal transactions, which spiked last week. This indicated that buying pressure on the token was rising, which could lead to a further price increase.

Additionally, the MVRV ratio also improved after dropping to -2%. Whenever the metric hits that level, it also alludes to a price hike.

Finally, according to Coinglass' data, Chainlink's long/short ratio also rose sharply over the 4-hour timeframe. A hike in this metric indicates that there are more long positions in the market than short positions, which can also help sustain a bull rally.

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Therefore, if these metrics and market conditions continue to support LINK, it won't be unrealistic to see the token move towards $50 in the coming months.