Cryptocurrency market caps have fallen by more than 1% in the past 24 hours, inflicting losses on the market as a whole. Top coins like Bitcoin and Ethereum took a hit, losing 3% and 4% of their gains last week, respectively.
However, Chainlink (LINK) resisted the prevailing bearish market forces amid this onslaught., gained 6.51% on the weekly chart. Additionally, the token recorded a price increase of 1.68% in the last 24 hours.
In the upward trend, LINK’s price exceeded $7. Can we ride the dominant bull wave and hit new highs? Let’s explore.
ChainLink’s daily active addresses hit two-month high.
LINK’s price rise comes amid a significant increase in active unique addresses on the network. data Chainlink’s unique addresses exceeded 3,900 for the first time since July 21, according to analysis by leading on-chain analytics firm Santiment.
This increase also signals increased network activity and participation, reflecting growing interest and engagement in the community. Moreover, the increase in unique active addresses is often synonymous with increased use and adoption of LINK, the network’s native token. And this can be seen by the increase in the market value of LINK over the past 7 days.
furthermore, update Chainlink adoption shows four network services integrated on six different chains. These chains include Arbitrum, Avax, BNB Chain, Etherem, Optimism, and Polygon.
Again, this integration further reflects broader use of the LINK token and increased participation in the Chainlink ecosystem. This shows that more people are adopting Chainlink and putting higher buying pressure on LINK, which is a plausible explanation for the continued price rise.
Chainlink (LINK) broke through $7 resistance. What are your future plans?
The daily LINKUSD chart below shows LINK preparing to reach $8, overcoming a significant barrier while buying pressure remains high.
After recording notable gains over the past eight days, LINK trades above two key support levels: $5.72 and $6.595. The token price fluctuated between key price levels from mid-August until September 18th.
Meanwhile, LINK has been trading below two important points – the 200-day moving average and the 50-day moving average ($6.488 and $6.706) – before making a sharp surge above $6.8. It has maintained momentum over the past few days, breaking the $7.00 barrier and is currently targeting the $7.8 resistance level.
LINK is currently trading above its 50-day and 200-day price levels, indicating strong bullish momentum in the market. If the sustained buying frenzy continues, LINK could reclaim this year’s high of $8.898, recorded on November 7, 2022. And if purchasing power continues to increase, the token may set a new record in the coming days.
However, while LINK has recovered more than 21% of last month’s gains in the ongoing rally, the token is still down 9% from its yearly high and bulls should boost momentum for the token to regain this level.
Featured image from Pixabay and chart from TradingView.com