Chainlink (LINK) has been one of the most popular tokens in recent weeks due to a combination of overall positive price movement and interesting on-chain developments.
Following recent heavy buying in the LINK market, cryptocurrency analyst Ali Martinez took to social media platform X to provide insight into the token’s potential price action.
29,000 wallets purchase 295 million LINK, forming the main support level.
Ali, August 11th Posted X reports that Chainlink has established a strong support area between $6.63 and $6.88 as approximately 29,000 addresses purchased more than 295 million LINK at this price range, based on data from analytics firm IntoTheBlock.
He went on to assume that as long as altcoins trade above this price range, investors will likely remain bullish. Especially since netchain data shows that there are no significant resistance levels ahead.
Source: IntoTheBlock
According to Ali, a significant number of LINK whales already perceive the $6.63-6.88 area as “strong” price support and are actively accumulating more tokens. He highlighted that over the past 14 days, LINK whales have purchased approximately 13 million LINK worth approximately $91 million.
However, while these developments can be seen as signs of strength in the LINK market, Ali says traders expecting a market breakout may still need to exercise some patience.
Using data from IntoTheBlock, cryptocurrency analysts have noted a decline in network activity on the Chainlink network over the past three weeks.
Ali said the number of large LINK transactions fell from 527 to 118 during this period. He concluded his market report by saying that an increase in this indicator is likely to precede a market breakout.
As of this writing, LINK is trading at $7.44, down 1.36% on the last day, according to data from CoinMarketCap. However, the token has risen 3.66% and 17.67% over the past 7 and 30 days, respectively.
More good news about Chainlink
In addition to Ali’s market analysis, there has been other positive news about Chainlink recently. Additionally, on August 11th, market information company Santiment reported LINK has experienced the highest levels of dormant coin movement in the past six weeks.
According to Santiment, this means a decrease in LINK’s average dollar investment age curve, which indicates a decrease in the time tokens are in wallets, which is usually a precursor to rising market capitalization.
Additionally, Chainlink has maintained an increase in development activity over the past few months. According to data from Santiment, Chainlink’s development activity increased from 1579.12 on May 31 to 1706.48 on August 3.
LINK trading at $7.432 on the daily chart | Source: LINKUSD chart on Tradingview.com
Featured image from Stockhead, chart from Tradingview