Chainlink Price Surge and Address Activity
In the midst of crypto market volatility, Chainlink, an oracle service provider, has experienced significant gains in its LINK price. Over the past week, the LINK price has increased by over 10%, and within the last 24 hours, it has risen by more than 5%. This surge has pushed its market cap to $4 billion. Additionally, Chainlink’s address activity has reached a two-month high, with 3,964 distinct addresses engaging with the LINK network.
Potential for Recovery and Resistance Levels
If the LINK price surpasses the $7.5 resistance level, it will recover all losses from the mid-August crash. While the recent surge has helped regain a substantial portion of these losses, further momentum is needed for sustained upward movement. To establish a credible rally, Chainlink’s price must successfully turn the $7.4 resistance into support and break through the $7.5 mark. However, failure to maintain momentum could result in a drop to $6.0.
Strength in Chainlink On-Chain Data
The strong bull momentum suggests that a steep fall in Chainlink’s price is unlikely. Network activity indicates bullish signs, particularly when examining the LINK supply on exchanges. In the past week, the total LINK held in exchange wallets has decreased by over 5 million LINK (approximately $35.4 million), indicating reduced selling pressure. Additionally, whales holding between 10,000 and 100,000 LINK tokens have accumulated 3 million LINK (approximately $21 million) during the recent rally.
Chainlink Integrates with Ethereum Layer-2 Arbitrum
Chainlink has partnered with Ethereum layer-2 scaling protocol Arbitrum to enable cross-chain decentralized application development. The Chainlink Cross-Chain Interoperability Protocol (CCIP) has been launched on Arbitrum One, providing developers with access to Chainlink’s solution and leveraging Arbitrum’s scalability advantages. This integration aims to unlock various applications, including cross-chain tokenization, collateralization, blockchain gaming, and data storage and computation.
Hot Take: Chainlink Continues to Outperform in the Crypto Market
Despite crypto market volatility, Chainlink has proven to be a strong performer with its LINK price gains and address activity reaching new highs. The potential for recovery and resistance levels provides insight into the altcoin’s trajectory. Chainlink’s on-chain data further supports its bullish sentiment, indicating strength in network activity and reduced selling pressure. Moreover, the integration with Ethereum layer-2 scaling protocol Arbitrum opens up opportunities for cross-chain decentralized application development. As Chainlink continues to outperform the broader crypto market, it solidifies its position as a leading oracle service provider.
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