On Thursday, Chainlink (LINK) extended its gains by more than 4%, trading around $17.22. This rally comes as on-chain data suggests further upward momentum for the cryptocurrency. Over the past two days, LINK has surged nearly 13%, driven by favorable market conditions and a spike in its long-to-short ratio, which has reached its highest monthly level. Additionally, LINK's funding rates remain positive, indicating strong investor sentiment.
The broader cryptocurrency market also saw positive movements. Aave (AAVE) experienced a rally on Wednesday, while Bitcoin (BTC), Ethereum (ETH), and XRP recorded modest gains. These developments occur against a backdrop of renewed selling pressure on the US Dollar, amid concerns about economic slowdown induced by tariffs implemented under former President Trump. The sentiment around the US Dollar has been negatively impacted, indirectly benefiting cryptocurrencies like LINK.
As investors look toward upcoming mid-tier US jobs data and statements from the Federal Reserve, market participants remain cautiously optimistic about the cryptocurrency sector's near-term prospects. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet. It is important to note that neither the author nor FXStreet is a registered investment advisor, and this article is not intended to provide investment advice.