Chainlink (LINK) Price Surges by 5% to Break Multi-Year Downtrend
The price of Chainlink (LINK) has experienced a significant rally, surging by 5% in the last 24 hours. This breakout on the technical chart has allowed LINK to break its multi-year downtrend and surpass $7.5. This suggests that the LINK price rally may continue in the future. Over the past week, the price of Chainlink has increased by 10%, and it has grown by more than 25% over the last month.
Analyst Predicts Bull Cycle for Chainlink in Q4 2023
Well-known crypto analyst Michael van de Poppe believes that Chainlink has finished its accumulation phase and will begin a bull cycle in Q4 2023. He states that this is similar to other markets, which are also starting to wake up. According to him, it is only a matter of time before sentiment shifts and people start to take notice of Chainlink’s potential.
Increase in Address Activity and Participation
Recently, Chainlink’s address activity reached a two-month high, indicating increased network activity and participation within the community. This surge in unique active addresses often corresponds with greater utilization and acceptance of Chainlink’s native token, LINK. As a result, LINK’s market value has appreciated significantly over the past week.
Price Target for Chainlink (LINK)
The current trading position of LINK is above both the 50-day and 200-day price averages, indicating strong bullish momentum in the market. If the current buying trend continues, there is a possibility for LINK to reach its yearly peak of $8.898 achieved on November 7, 2022. Furthermore, if buying momentum persists, LINK could potentially establish a new all-time high in the coming days.
Decrease in Selling Pressure
The selling pressure on Chainlink has decreased as the supply of LINK on centralized exchanges (CEXs) has reduced. Data from Santiment shows that Chainlink’s supply has dropped by 16.4% in the past ten days. A decrease in token supply typically leads to reduced selling pressure and a more positive outlook for the coin.
Tokens Moved to Cold Wallets
Santiment also reports that Chainlink tokens have been moved from exchanges to cold wallets, effectively taking them out of circulation. This development further supports a bullish scenario for Chainlink, as it indicates a long-term investment strategy and decreased selling activity.
Hot Take: Chainlink’s Bullish Breakout Signals Potential for Further Growth
The recent breakout of Chainlink’s multi-year downtrend and its strong price rally indicate the potential for further growth in the future. With increased network activity, participation, and address activity, as well as decreased selling pressure and tokens being moved to cold wallets, Chainlink is positioning itself for a bullish cycle. Analysts predict that Q4 2023 could be the start of this bull cycle, which aligns with the awakening of other markets. Overall, sentiment is shifting towards Chainlink’s favor, making it an attractive asset to watch in the crypto space.
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