- Chainlink, a prominent oracle network, showcases strong bullish indicators, with its network activity and LINK’s demand outstripping supply.
- The expanding DeFi sector and Chainlink’s growing partnerships are influencing LINK’s price positively, with potential for further gains.
As an oracle network, Chainlink serves as a bridge between smart contracts and real-world data, and lately, it has shown considerable resurgence in its network activity, pointing to a strong bullish market sentiment. Specifically, a 10% increase in the network’s address activity reveals growing user engagement and amplified on-chain action. Moreover, an imbalance in the bid-ask volume, favoring bulls by 7%, highlights a heightened demand for Chainlink’s native token, LINK, versus its market availability.
These bullish indicators are clearly reflected in Chainlink’s recent price performance. In the past few weeks, LINK’s price has rallied significantly, witnessing a 26% upsurge since hitting its local low. At the moment, LINK trades at $6.3, a value last observed in June, signaling revived investor interest and potentially signaling an end to the bearish phase that has prevailed over the token for some time.
One cannot overlook the critical role the burgeoning DeFi sector is playing in Chainlink’s bullish performance. DeFi platforms, in their quest to incorporate real-world data into their smart contracts, are increasingly relying on Chainlink’s oracles. This reliance not only boosts Chainlink’s usage but also positively influences LINK’s price. As the DeFi sector continues its upward trajectory, the demand for Chainlink’s oracle services is anticipated to follow suit, potentially pushing LINK’s price higher.
Chainlink’s ongoing developments and collaborations also contribute positively to its network activity. As more platforms embrace Chainlink’s technology, the ecosystem’s vibrancy augments, which is mirrored in on-chain metrics and, subsequently, in LINK’s price. Nonetheless, like any other cryptocurrency investment, the inherent risks need careful consideration. Despite Chainlink’s current on-chain data and price action displaying bullish tendencies, investors should monitor the broader market sentiment and protect their position against unexpected market occurrences.
Chainlink (LINK) recently displayed a surge in bullish sentiment, rebounding from the $5 support level. Over the past week, LINK has conquered several support levels, resulting in over a 20% gain. The altcoin’s technical outlook has turned notably bullish, with both demand and accumulation showing marked improvement. The overall strength of the broader market has also contributed to LINK’s upward momentum.
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A potential price pullback for LINK cannot be entirely discounted, but the increased buying power should mitigate a loss of momentum. If LINK can maintain its nearest support level, the ongoing price rally is likely to persist, as the increase in LINK’s market capitalization suggests the anticipation of further bullish gains.
Recent trading sessions have seen a notable improvement in buying strength for LINK. The Relative Strength Index (RSI) surpassing the 60-mark signals growing demand, suggesting potential for increased gains in the price action. The daily chart for LINK shows buy signals in sync with the increasing demand. The Moving Average Convergence Divergence (MACD) indicator exhibits tall and growing green histograms, typically associated with buy signals, indicating a positive momentum for the altcoin.
However, it is worth noting that the Chaikin Money Flow (CMF), a measure of capital inflows and outflows, has formed a downtick. While capital inflows still overshadow outflows, the rate of inflows has been declining at press time. As such, careful monitoring of the market is crucial.
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