Santiment stated that Chainlink has reached its highest level of optimism since February 1, over six months ago. Chainlink has also risen 54% in the last 30 days, trading at $24 at the time of publication, according to data from CoinMarketCap.
Another increase of 6.2% to $25.50 would put around $61 million in short positions at risk of liquidation, according to data from CoinGlass.
Despite its recent surge, Chainlink is still 55% below its all-time high of $52.88 from May 2021.
It is among several of the top 20 cryptocurrencies, such as Stellar, Hedera, and Litecoin, that have yet to recover their all-time highs from 2021.
Analysts have said that many traders may be waiting for popular coins from 2021 to reach all-time highs again before selling at breakeven.
Still, some analysts suggest it could rise. Cryptocurrency trader Miles Deutscher stated: "LINK could be the most obvious investment in large-cap stocks for this cycle," adding that "most people will overlook it."
Deutscher said this is because Chainlink is the "winner of the institutionalization of cryptocurrencies and the explosive growth of stablecoins, tokenization, and RWA."
On Monday, Chainlink partnered with Intercontinental Exchange (ICE), a U.S. Fortune 500 company, to incorporate data on currencies and precious metals on-chain.
Chainlink co-founder Sergey Nazarov said on May 15 that asset tokenization will accelerate capital movement in traditional markets and boost capital velocity in asset classes such as Treasury bonds, stocks, private credit, commercial debt, and real estate.