Chainlink (LINK) Price Rally and On-Chain Metrics
On November 9, the price of Chainlink (LINK) hit a new 2023 peak at $16 before experiencing a 10% reversal below $14.5. Despite this, vital on-chain metrics are indicating a potential instant rebound for LINK.
Majority of LINK Holders are Targeting More Profits
Following the market-wide liquidations on Thursday, LINK price declined by 10% to a daily low of $14.40. However, recent on-chain movements suggest that most LINK holders are still positioned for a prolonged price rally.
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According to the CryptoQuant chart, investors have reduced their LINK exchange deposits by 1.4 million tokens this week, indicating that most holders are targeting more profits and cooling concerns of a large-scale sell-off.
Chainlink’s Rising New User Acquisition Rate Has Reached a 4-Month Peak
The increase in the number of Chainlink’s New Users has been a major driver behind the rally. As depicted in on-chain data trends, Chainlink’s rising new user acquisition rate reached a four-month peak of 3,004 addresses on Thursday.
The New Addresses metric tracks the rate at which a blockchain network attracts new users by summing up new Chainlink wallets created daily. This increased demand from new users could prop up prices despite the market-wide correction.
LINK Price Prediction: Is $20 Within Reach?
Drawing inferences from the on-chain metrics analyzed above, Chainlink looks set to snap out of consolidation phases soon. The Global In/Out of the Money (GIOM) data affirms this bullish prediction, showing that Chainlink’s price must first scale the initial resistance at $15.40 for the bulls to be confident of reclaiming $20.
If those holders exit early, they could slow down the price rally. But if the bulls can scale that resistance level, Chainlink’s price will likely reclaim $20 as predicted.
Hot Take: Potential for Chainlink’s Upward Pressure
Despite experiencing a decline in price, various on-chain metrics indicate that Chainlink’s potential for an upward pressure remains strong due to decreased exchange reserves and increased demand from new users joining the network.
