Chainlink (LINK) gains 11% despite market downturn in the past week.
Chainlink (LINK) gains 11% despite market downturn in the past week.
The Resilience of Chainlink in the Bearish Crypto Market
In the face of a broader cryptocurrency market under bearish pressure, Chainlink has managed to remain bullish, displaying a remarkable upward trajectory. The token closed at a bullish $7.4 on September 26th, representing a 7% increase. Over the past seven days, LINK has experienced an even more impressive 11% price surge, with a 2% gain in the last 24 hours. However, amidst this impressive surge in price, trading volume has declined by 17% in the past 24 hours, leaving one to ponder the reason behind this apparent contradiction.
Chainlink Price Continues To Surge
On September 24th, Chainlink network announced multiple integrations across six prominent blockchains, including Arbitrum, Ethereum, Optimism, Avalanche, Polygon, and BNB Chain. This increased adoption across multiple chains has expanded Chainlink’s user base, which may be a plausible explanation for LINK’s resilience amid the prevailing bearish market. The fact that these integrations demonstrate a commitment to cross-chain compatibility further enhances Chainlink’s position in the market.
Additionally, gaming platform BetSwirl recently stated that it had integrated Chainlink’s CCIP across Ethereum, Polygon, Avalanche, and Arbitrum. This CCIP integration allows BetSwirl to enable seamless, secure, and reliable cross-chain token transfers. These integrations and partnerships further strengthen Chainlink’s reputation and foster confidence in its technology.
Despite briefly slipping from $7.5 to $7.3, LINK has rapidly recovered momentum. Based on its current movement, there is a possibility that the cryptocurrency could break the $7.8 resistance and achieve even higher highs in the near future. These positive developments have positioned Chainlink as the third-best weekly gainer, following CRV and PEPE. Furthermore, Chainlink has also secured a place on the top daily gainers’ chart.
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However, while the price strides have remained bullish, the 17% decrease in trading volume raises concerns about the sustainability of the rally. Reduced trading activity could indicate that buyers have reached saturation and are taking a moment to assess their next move. This setup is potentially negative for LINK, as it may signal the entrance of sellers, thus exerting downward pressure on the token’s price.
Price Surge Drops Chainlink (LINK) Supply On Crypto Exchanges
Santiment, an analytics platform, revealed in a September 24th report that Chainlink has been one of the best-performing cryptocurrencies in September. Notably, LINK’s price tends to receive an initial boost when holders move their tokens from exchanges to cold wallets. Over the past two weeks, this phenomenon has resulted in a 23% increase in LINK’s price.
According to Santiment’s data, LINK exchange supply had previously spiked by 17.2%, reaching a high for 2023 on September 14th. However, ten days later, on September 24th, the token’s exchange supply dropped to 16.4%, potentially explaining the decline in trading volume experienced by Chainlink. This shift in supply dynamics suggests that LINK holders are becoming more inclined to hold their tokens rather than trading them on exchanges.
As of writing, LINK is trading at $7.64, displaying a 2.88% increase in the last 24 hours. Moreover, the token is trading above the simple moving averages of $6.494 and $6.719, indicating the presence of strong support levels. With LINK approaching the overbought area and forming a bullish candlestick, it is evident that buyers are actively vying to conquer the $7.823 resistance.
In conclusion, Chainlink’s bullish position in the face of a bearish crypto market is not without reason. The multiple integrations across various blockchains, including prominent platforms like Arbitrum, Ethereum, and Polygon, have expanded Chainlink’s user base and reinforced its status as a leading oracle provider in the industry. Additionally, the movement of LINK tokens from exchanges to cold wallets contributes to the decline in trading volume, as holders seem increasingly inclined to hold their tokens for the long term. While the sustainability of LINK’s rally remains uncertain, the market’s response and continued adoption of Chainlink’s technology speak volumes about its potential for continued growth and success in the blockchain industry.
