Chainlink Remains Bullish Despite Market Pressure
Despite the broader bearish sentiment in the crypto market, Chainlink has managed to maintain a bullish trend. The cryptocurrency closed at $7.4 with a 7% increase on September 26.
Chainlink’s price has been steadily rising, with an 11% increase over the past week and a 2% gain in the last 24 hours. However, it is worth noting that trading volume has declined by 17% in the same period. This raises questions about the reason behind this contradiction.
Chainlink’s Price Surge and Adoption
On September 24, Chainlink announced multiple integrations across six blockchains, including Ethereum and Polygon. These integrations have expanded Chainlink’s user base and likely contributed to its resilience in the bearish market.
In addition, gaming platform BetSwirl recently integrated Chainlink’s CCIP across several chains, enabling seamless cross-chain token transfers. These developments have further boosted Chainlink’s adoption and potential for future growth.
Potential for Higher Highs
Although there was a brief dip to $7.3, Chainlink quickly regained momentum and could potentially break the $7.8 resistance level to reach higher highs in the near future.
Chainlink currently ranks third among the top weekly gainers and has also secured a position on the top daily gainers’ chart. However, the declining trading volume raises concerns about whether this rally can be sustained.
Decrease in Exchange Supply
An analysis by Santiment shows that Chainlink’s price often experiences an initial boost when holders move their tokens from exchanges to cold wallets. In September, LINK’s price increased by 23% as exchange supply flowed back to cold wallets.
However, on September 24, the exchange supply dropped to 16.4%, which could explain the decline in trading volume. This suggests that buyers may have reached saturation and are pausing to evaluate their next moves.
Current Price and Resistance Levels
As of writing, Chainlink is trading at $7.64 with a 2.88% increase in the last 24 hours. The token is trading above key support levels and is approaching the overbought area. Buyers are aiming to overcome the $7.823 resistance level.
Hot Take: Chainlink’s Resilience Amid Market Pressure
Despite the bearish sentiment in the broader crypto market, Chainlink has managed to remain bullish, thanks to increased adoption across multiple chains. This has expanded its user base and potential for growth. However, the declining trading volume and drop in exchange supply raise concerns about the sustainability of this rally. It remains to be seen whether Chainlink can continue its upward trajectory or if sellers will enter the market and exert downward pressure on its price.
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