The current upward momentum could push Chainlink’s price above $7.5, making up for all the losses it experienced in mid-August.
Despite the crypto market’s ups and downs, Chainlink, an oracle service provider, has been a strong performer. Its LINK token has gained over 10% in the past week and has recently risen over 5%, surpassing $7.00 and reaching a market cap of $4 billion.
During this price increase, Chainlink’s on-chain activity has reached a two-month high. Santiment, a data provider, noted that Chainlink is doing better than the broader crypto market and has broken through the $6.80 resistance level. The number of unique addresses interacting with the LINK network reached 3,964 recently, the highest in the past two months.
Courtesy: Santiment
If Chainlink’s LINK price can go above the $7.5 resistance, it will recover all the losses it experienced during the mid-August crash. Although it has bounced back by 21.55%, it still needs more momentum to continue rising. For a sustained rally, it’s crucial that the price establishes support at the $7.4 level and breaks through the $7.5 mark.
However, if the LINK bulls can’t maintain this momentum, the altcoin’s price could drop to $6.0. This is because all three exponential averages currently converge around that price level.
Chainlink On-Chain Data Indicates Strength
With the strong upward momentum in Chainlink (LINK) price, a significant drop is becoming less likely.
Network activity is showing mainly bullish signals, especially when looking at the LINK supply on exchanges. Over the past week, there has been a decrease of over 5 million LINK (about $35.4 million) in the total LINK held in exchange wallets. This decline indicates a decrease in selling pressure.
Adding to this positive outlook is the noticeable accumulation of LINK tokens by large investors. During the recent price rally, addresses holding between 10,000 and 100,000 LINK tokens have seen an increase of 3 million LINK (approximately $21 million).
Courtesy: Santiment
Chainlink Arrives on Ethereum Layer-2 Arbitrum
The Chainlink oracle network and Ethereum’s layer-2 scaling protocol Arbitrum have come together to make it easier to create decentralized applications that work across different blockchains.
They recently announced the launch of the Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One’s mainnet. This partnership allows developers to use Chainlink’s tools with the fast and cost-effective scaling capabilities of Arbitrum.
By combining CCIP and Arbitrum One, they hope to enable various applications like moving tokens between different blockchains, using assets as collateral, creating blockchain games, and managing data storage and processing.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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