Chainlink’s LINK token exploded to its highest level in nearly two years this week due to increased on-chain activity from dormant wallet holders. The Oracle Network leader has seen massive price increases as long-term holders resume trading with cached LINK files.
TLDR
- Chainlink’s LINK token surged to a 22-month high of around $18, driven by increased circulation from previously dormant wallets.
- Santiment data shows a spike in the “Time in Use” metric as long-locked coins are put back into active use.
- Inflows into the dormant LINK reentrant network are likely what triggered the recent price rally.
- Chainlink continues to establish itself as a leader in blockchain oracle services and cross-chain interoperability.
- Some analysts predict that LINK will continue to rise to levels between $25 and $30 based on bullish technical indicators.
Chainlink recently recorded its largest-ever surge in dormant token movements coming back online, according to blockchain intelligence firm Santiment. By analyzing “Age Consumed,” which is the amount of tokens transferred multiplied by how long the coin has been idle, Santiment discovered huge inflows of previously inactive LINK being brought back into market circulation.
??????? #Chainlink jumped ahead #altcoin Some previously dormant wallets used the pack after generating the highest Age Consumed spike (5.38B, calculated by multiplying the number of coins moved by the number of days the coins were dormant). This influx is $LINK back in
(continue) ???? pic.twitter.com/eHVpeJz2HW
— Santiment (@santimentfeed) February 1, 2024
This changing tide, which has re-energized sideline supply, caused LINK price to break the important resistance around the $17 level. In early trading on Friday, LINK surged to an intraday high of $18.13. This is the highest value since April 2021, when the token briefly traded above $28.
Santiment suggests that the huge movement in dormant coins, with investors taking profits or rotating into other assets, has put selling pressure on them. These liquidations create fear, uncertainty and doubt, especially among those worried about major holders’ prices collapsing.
But paradoxically, this chain reaction often leads traders to buy dips. This speculative reaction plays into LINK, with buyers overwhelming the excess supply hits from newly active whales.
In addition to reviving influential market whales, Chainlink maintains blockchain foundations by providing valuable cross-chain and oracle services as adoption accelerates across enterprises and traditional institutions. The network’s Cross-Chain Interoperability Protocol (CCIP) also allows LINK to benefit from the growth of asset tokenization.
With fundamentals firmly supporting its value, LINK is often praised as an altcoin outlier poised to thrive regardless of volatile market sentiment. Technical charts are currently telling a similar bullish story.
LINK, which will outperform almost every major cryptocurrency asset in 2024, currently trades at around $18 per share, up more than 30%. Some seasoned analysts predict that the asset will rise to resistance near $20 and a strong trend reaching between $25 and $30 will maintain favorable momentum.
Higher lows have been confirmed. $LINK.
As Ethereum picks up speed, we will likely see a massive breakout in Chainlink in the coming days.
It is likely to rise to $25-$30 in the future. pic.twitter.com/D514NHv1mK
— Michael van de Poppe (@CryptoMichNL) February 1, 2024
As established giants like banks and stock exchanges turn to platforms like Chainlink for improved Web3 efficiency, LINK appears to be a visionary investment in the inevitable possibilities of blockchain. Of course, sustaining its massive price rise largely depends on Bitcoin charting the direction of the cryptocurrency over the long term.
