Chainlink (LINK) Price Hits 16-Month Peak, Driven by On-Chain Analysis
The price of Chainlink (LINK) has reached $11.50 for the first time since June 2022, making it one of the top performers in the crypto market’s top 20 rankings. The ongoing LINK price rally is being driven by several key factors, including increasing transactions on the Chainlink network and significant trading activity from whale investors.
Chainlink Transactions Have Been Rising Persistently Over the Week
Chainlink has experienced a surge in demand due to its role in asset tokenization and real-world assets. On-chain data shows that the number of transactions on the Chainlink network has been steadily increasing since October 18, reaching a 9-month peak of 16,068 LINK transactions on October 23. This indicates growing network usage and demand for the native token.
Crypto Whales Have Increased Trading Activity Significantly
Whale investors have also played a significant role in driving the Chainlink price rally. The Chainlink network recorded 950 whale transactions in the last two days, with 544 transactions on October 23 and 406 transactions on October 24. This level of whale demand for LINK tokens is the highest since November 2022.
LINK Price Prediction: A Decisive Breakout above $12 Could Catalyze More Gains
From an on-chain perspective, Chainlink’s fundamental network demand suggests further price gains. However, there is a sell-wall at $14 that could limit the ongoing rally. If the bulls can break through this resistance level, the price prediction could head toward $20. On the downside, if bears manage to reverse the trend, LINK could see a downswing toward $6.
Hot Take: Chainlink’s Ongoing Rally Is Driven by Organic Network Improvement
The current rally in Chainlink’s price is not simply a result of piggybacking on the bullish sentiment in the broader crypto markets. On-chain analysis reveals that the increasing transactions on the Chainlink network and significant trading activity from whale investors are the main drivers behind the LINK price rally. With growing network usage and demand, as well as continued buying from whales, Chainlink bulls have the potential to push for significant gains in the future.
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