Chainlink has remained strong despite bearish pressure from the broader cryptocurrency market. The cryptocurrency showed strength yesterday, September 26, at $7.4, up more than 7%.
LINK remains strong, with its price up 11% in 7 days and over 2% in the last 24 hours. However, while the token price continues to rise, data shows that trading volume has decreased by 17% in the last 24 hours. What is the reason for this contradiction?
Chainlink price continues to surge
In an X post on September 24th, the Chainlink network announced: We have recorded several integrations. Across 6 blockchains. These include Arbitrum, Ethereum, Optimism, Avalanche, Polygon, and BNB Chain.
And yesterday, September 26th, the gaming platform BetSwirl presentation We have integrated Chainlink’s CCIP across Ethereum, Polygon, Avalanche, and Arbitrum. According to this post: CCIP integration “enables BetSwirl for seamless, secure and reliable cross-chain token transfers.”
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Chainlink’s user base has expanded as adoption grows across multiple chains. This is a plausible factor supporting LINK’s resilience amid the prevailing bear market.
LINK briefly fell from the $7.5 level to $7.3 yesterday, but has since regained momentum. Considering the continued movement, the cryptocurrency asset may break the $7.8 resistance and hit higher highs soon.
Meanwhile, Chainlink (LINK) ranks third among the top weekly gainers, behind CRV and PEPE. It also earned a spot on the daily top gainers chart.
Although price growth is strong, trading volume has decreased by 17%, raising concerns about whether LINK can maintain its upward trend. This indicates a decrease in trading activity and may be a sign that buyers have reached saturation point and are pausing to gauge their next move.
This setup bodes poorly for LINK as it signals the entry of sellers and could put downward pressure on the token price.
Chainlink (LINK) supply suspended on cryptocurrency exchanges due to price surge
According to Santiment: report As of September 24, Chainlink remains one of the best-performing cryptocurrencies in September. Unlike most assets, LINK’s price often records an initial rise when holders move their tokens on exchanges, he explained.
Santiment noted that asset prices increased 23% in two weeks as exchange supply flowed back into cold wallets. The analytics platform also reported that LINK exchange supply increased 17.2%, hitting a 2023 high on September 14.
However, 10 days later, on September 24, the token supply on exchanges fell to 16.4%. This observation is a plausible reason for Chainlink’s declining trading volume.
Meanwhile, as of this writing, LINK is trading at $7.64, up 2.88% in price over the past 24 hours. The token is trading above the simple moving average of $6.494 and $6.719 and two key support levels.
LINK is approaching overbought territory and is forming a bullish candle as buyers race to conquer the $7.823 resistance level.
Featured image from Pixabay and chart from TradingView.com