There is a growing divergence between LINK's rising prices and declining momentum, hinting at an exhausting bullish sentiment in the market.
The price of Chainlink (LINK) has surged by approximately 40% over the past week to hit $19.75, its highest level in two years. At least three catalysts have spurred investor confidence and catalyzed this buying behavior.
However, the price rise does not accompany strong momentum, increasing bull trap risks. Let's look closer at these factors.
First, there has been a significant activation of previously dormant wallets, leading to the highest recorded spike in the "Age Consumed" metric. Santiment argues that the sudden deployment of old LINK tokens into circulation has contributed to the price jump.
