The cryptocurrency market has experienced a slight decline, with the overall market cap decreasing by over 1% in the last 24 hours. This has resulted in losses for top coins such as Bitcoin and Ethereum, which have lost 3% and 4% of their gains from the past week, respectively.
However, one cryptocurrency, Chainlink (LINK), has managed to resist the bearish market forces and has actually seen a 6.51% increase in value on the weekly chart. Additionally, over the past 24 hours, LINK has recorded a 1.68% price increase. This positive performance has allowed LINK to surpass the $7 price mark, raising the question of whether it can continue to ride the current bullish wave and reach new highs.
One factor contributing to LINK’s price increase is the significant rise in active unique addresses on the network. Data from leading on-chain analytics firm Santiment shows that Chainlink’s unique addresses have exceeded 3,900 for the first time since July 21. This surge in active addresses indicates increased network activity and engagement, reflecting a growing interest and involvement within the community. It is often a sign of increased usage and adoption of the network’s native token, LINK, which is evident in the token’s market value increase over the past seven days.
Furthermore, Chainlink adoption has been expanding with four of the network’s services integrated across six different chains, including Arbitrum, Avax, BNB Chain, Ethereum, Optimism, and Polygon. These integrations demonstrate a wider usage of the LINK token and increased participation within the Chainlink ecosystem. The growing adoption suggests that more people are embracing Chainlink and exerting higher buying pressure on LINK, which helps explain the current price uptick.
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Looking at the daily LINKUSD chart, it appears that LINK is poised to reach $8 as it overcomes key resistance levels while experiencing high buying pressure. The token has emerged from a period of fluctuation between the support levels of $5.72 and $6.595, which it had been trading within from mid-August to September 18. Additionally, LINK has surpassed the previously challenging points of the 200-day and 50-day moving averages ($6.488 and $6.706), and has now broken the $7.00 barrier. The next target for LINK is the $7.8 resistance level.
The fact that LINK is currently trading above the 50 and 200-day price levels indicates a strong bullish momentum in the market. If the current buying frenzy continues, there is a possibility that LINK could reach its year-high of $8.898, which was recorded on November 7, 2022. In fact, if the buying strength continues to increase, LINK may even set a new all-time high in the coming days.
However, it’s important to note that despite the recent rally and regaining over 21% of its gains from the previous month, LINK is still down 9% from its year-high. In order to reclaim this level, the bulls must increase their momentum.
In summary, while the cryptocurrency market has experienced a decline, Chainlink (LINK) has managed to buck the trend and record gains. The increase in active unique addresses on the network and the integration of Chainlink’s services across various chains demonstrate growing adoption and usage of the LINK token. With LINK breaking key resistance levels and trading above important price levels, there is a potential for the token to reach new highs if the current bullish momentum continues. However, it remains to be seen whether LINK can reclaim its year-high and set a new record high.
