Chainlink Holds Strong With 19% Rally – More Gains In The Pipeline?

Christian Encila

1 year ago

3 mins read

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Chainlink (CHAIN) has recently experienced a surge in its short-term price action, delivering considerable gains to its holders. The excitement surrounding this upward momentum has been palpable, but astute observers have noticed some intriguing indications that suggest this hike might not necessarily signify the peak for LINK.

Such a notion is not mere speculation; instead, it finds its foundation in the actions of LINK holders and the patterns observed in trading activity. These compelling insights offer a glimpse into the future trajectory of Chainlink and its possibilities.

LINK Price Surge Fueled By Increased Accumulation, Network Activity

LINK’s recent price surge has been underpinned by a significant token accumulation and notable activity on the Chainlink network. According to a LINK price report referencing Santiment data, the number of addresses holding between 0 to 1 million LINK has seen an incredible increase, potentially playing a pivotal role in driving the token’s value.

Source: Santiment

Coingecko data shows LINK registering an impressive $8.33 price, and a remarkable 24-hour rally of 19.0%. In the last week, the crypto has risen 15.0% in value.

Source: Coingecko

However, the surge appears far from an isolated event, as the accumulation rate has shown no signs of slowing down. Such consistent accumulation often suggests a growing conviction among investors and traders that LINK’s value may be on the verge of another substantial increase.

Insights From Network Activity

A telling metric, the adjusted price to Daily Active Addresses (DAA) divergence, provided intriguing insights into the Chainlink network’s current state.

As the token’s price rose, the number of active addresses decreased. When looking at historical trends, this pattern has indicated previous upswings for the Chainlink network. Consequently, this data hints at the possibility of another impending price upswing for the LINK token.

Bitcoin (BTC) trading at $29,855 today. Chart: TradingView.com

The number of developers actively contributing to the Chainlink network has also experienced a significant increase since the first week of July.

Technical analysts closely scrutinize chart patterns and price movements to identify potential trends and reversals. The recent rally in LINK’s price may have triggered breakout signals and attracted momentum traders, causing the price to surge even further.

These technical indicators and chart patterns can act as self-fulfilling prophecies as traders react to them, potentially leading to a cascading effect on the token’s price.

As the market evolves, tracking these key metrics, understanding market sentiment, and assessing broader market dynamics will be crucial in making informed decisions about LINK’s prospects.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Cavatorta

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.