Even as the broader cryptocurrency market experiences a downward trend, Chainlink’s local presence has been notably strong. The price of LINK, an altcoin, surged by more than 10% last week.
Currently, LINK has exceeded the $7 mark with a more than 5% increase in the last 24 hours, and its total market value has surpassed $4 billion.
During this recent price increase, the activity in Chainlink’s wallet addresses reached its highest point in the past two months. Chainlink has outperformed the broader cryptocurrency market and has successfully crossed the resistance level at $6.80. Yesterday, the number of different wallet addresses interacting with Chainlink’s network reached 3,964, marking the highest level in the past two months.
By surpassing the resistance at $7.5, LINK has managed to recover all its losses from the mid-August crash. While the recent 21.55% price increase has helped the altcoin regain a significant portion of its losses, it still needs more momentum to sustain its upward trajectory. To ensure a sustained rally, Chainlink must overcome the resistance at $7.4 and reach the $7.5 level.
However, if the LINK bulls cannot maintain the momentum, the altcoin’s price could drop to $6.0. This possibility is indicated by the three Exponential Moving Averages displayed in the chart, which have converged near this level.
Chainlink’s On-Chain Data Signals Resilience
With the strong bullish momentum in play, the likelihood of a significant price drop for LINK appears quite low. On-chain data, particularly the decrease in LINK held in cryptocurrency exchange wallet addresses, strongly suggests an upward trend. Over the past week, the total amount of LINK in exchange wallets has decreased by over 5 million tokens, equivalent to roughly $35.4 million. This reduction indicates a decrease in selling pressure.
Furthermore, the accumulation of LINK by large holders, known as whales, adds to this positive sentiment. During the recent price rally, wallet addresses holding between 10,000 and 100,000 LINK have amassed approximately 3 million LINK, valued at around $21 million.
In other news, the blockchain oracle network Chainlink has recently partnered with the Ethereum Layer 2 scaling protocol Arbitrum (ARB) to enhance the development of cross-chain decentralized applications. In a joint announcement on September 21, these two protocols revealed the mainnet launch of the Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One. This collaboration offers developers access to Chainlink’s solutions by harnessing Arbitrum’s high-efficiency and cost-effective scaling capabilities.
The integration of CCIP and Arbitrum One aims to unlock a wide array of applications, including cross-chain tokenization, collateralization, blockchain-based gaming, and data storage and computation.
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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