Oracle service provider Chainlink’s native token LINK has experienced a significant surge as the overall crypto market upticks. As of now, the cryptocurrency has increased by 9.02%, reaching a trading value of $6.80 with a trading volume of $198 million. This surge represents a remarkable 179% increase over the past 24 hours.
One of the key factors that could potentially impact LINK’s price growth in the coming days is the movement of tokens from the network’s wallet to various exchanges. On September 16, four wallets associated with Chainlink transferred a total of 18.75 million LINK tokens across different platforms, amounting to $119 million. Initially, these wallets were intended to hold tokens that were not yet in circulation. Recently, approximately 15.7 million LINK tokens (equivalent to $100 million) from these wallets were transferred to Binance. Additionally, 3.05 million LINK tokens (approximately $19 million) were moved from the wallets to a multi-signature wallet known as 0xD50f.
Due to these significant on-chain activities and their potential implications, investors are eagerly anticipating how the price of LINK will react.
Currently, LINK is in an uptrend and has formed a bullish engulfing pattern to break above the $6.3 resistance level. Although it remains below its 200-day Simple Moving Average (SMA), today’s green candle has successfully surpassed the 50-day SMA, indicating increased buyer pressure. The buyers at the $6.1 support level have pushed the crypto coin’s rally, following a brief retracement between September 16-17. Moreover, the Relative Strength Index (RSI) has risen to a value of 58.00, moving from the neutral zone and approaching the overbought region of 70. LINK has successfully overcome the $6.3 resistance level, suggesting that buyers will likely sustain the rally in the coming days. Additionally, the Moving Average Convergence/Divergence has exhibited a strong buy signal, confirmed by its green Histogram bars. If buyers continue to accumulate tokens, the cryptocurrency is expected to experience further price gains. However, the unlock and transfer of 21 million LINK tokens on September 16 could potentially lead to a brief retracement in the long term if buyers relent.
Since Chainlink’s partnership with Swift and other companies on August 31, LINK has demonstrated positive market moves. The successful transfer of tokenized value across various private and public blockchains in an experiment between the interbank communication system Swift and Chainlink has boosted investor confidence in purchasing more LINK tokens, potentially driving up the token’s value. On September 7, Santiment noticed that Chainlink’s top-tier holders, those with 10,000-100,000 LINK tokens, actively increased their holdings. The number of wallets holding 10,000 to 100,000 LINK tokens reached its highest point since December 3, 2022, with 3,127 wallets collecting $9.6 million worth of LINK in just three days, representing 0.154% of the total supply. Furthermore, Santiment’s report revealed the creation of 98 new wallets in this category.
On September 9, crypto expert Ali disclosed that these whales had purchased over 4 million LINK coins, totaling $24 million, in just 10 days. These accumulations signify heightened investor interest in Chainlink and are likely to drive demand, thereby increasing the token’s price in the future.
In conclusion, Chainlink’s native token LINK has experienced a significant surge in price, driven by on-chain activities and increased investor interest. With ongoing positive market moves and the accumulation of tokens by major holders, LINK’s price is expected to continue its upward trend in the coming days.