Chainlink Price Continues Bullish Rally as Altcoins Surge
While the Bitcoin price consolidates around $34,200 levels, altcoins like Solana (SOL), Cardano (ADA), and Chainlink (LINK) continue with their bullish rally ahead. The Chainlink price is up by a staggering 6.6% over the last 24 hours, moving closer to $12. In the past 10 days, the LINK price has gained approximately 45%, driven by strong investor activity.
Chainlink’s Potential Rally to $15
Popular crypto analyst Ali Martinez has noted that Chainlink has successfully breached an ascending triangle pattern on its hourly chart. This bullish formation suggests a potential 14% price increase, possibly propelling LINK towards the $13 mark.
Cautious Approach for New Investors
Today’s LINK price rally to $11.50 has been backed by a 90% surge in the 24-hour trading volume. However, investors making any fresh entry at this point should remain cautious as on-chain data shows a drop in trading activity.
On-Chain Data Signals Caution
The CryptoQuant chart illustrates Chainlink’s impressive performance with an all-time high of 8,086 Active Addresses on October 23. However, in the week following October 23, LINK’s Active Addresses experienced a significant decline, dropping to 3,233 by October 29 — a remarkable 60% reduction in daily network engagement in just one week.
Decrease in Network Engagement and Growth
Chainlink’s network activity has witnessed a substantial 60% decrease over the past week, as shown in the chart above. Additionally, Santiment reports a significant reduction in the creation of new addresses on the Chainlink network. Network Growth figures have seen a sharp decline, plummeting by 60% to 1,008 new addresses as of October 29.
Hot Take: Chainlink’s Bullish Momentum May Be at Risk
While Chainlink has experienced a bullish rally recently, caution is advised due to the drop in trading activity and network engagement. The decrease in active addresses and network growth suggests reduced demand for Chainlink’s services. New investors should carefully consider these factors before making any investment decisions. It will be interesting to see if Chainlink can sustain its positive momentum or if it will face further challenges ahead.
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