Chainlink (LINK) Returns to Multi-Month High – What’s Behind the Move?
The Chainlink LINK (LINK) token experienced a 7% increase to trade at $16 on January 17, a level seen on December 29, 2023. This strengthened its position as the 11th largest cryptocurrency by market capitalization (excluding stablecoins).
While LINK has gained in value, it is worth noting that the price of Bitcoin (BTC) has fallen by 2% over the same period. Compared to Ether (ETH)'s 0.65% decline and SOL's (SOL) 5.5% increase, LINK's performance stands out.
A quick description of Xena and Chainlink's roadmap shows that the project's Oracle and decentralized computing solutions are driven by real-world asset (RWA) tokenization and institutional adoption tokens.
However, can LINK maintain its current lineup? Let's get together. Look at B.
Chainlink's partnerships and collaborations support LINK upwards
A number of recent developments have contributed to LINK outperforming its peers. In particular, the announcement of ChainlinkLab's partnership with the SingularityDAO decentralized platform and Swift contributed to the bullishness, supporting its presence in the RWA sector for months.
7. Chainlink's strong partnership with SWIFT will open a large flow of capital from tradfi markets to the blockchain industry, transferring the token's generated value globally and enhancing cross-border txns flow and accessibility. In the SWIFT trial… pic.twitter.com/hDhQvhOoh2
— DeFi Cheetah ¤ (@DeFi_Cheetah) January 13, 2024
Moreover, Redacted's recent integration of Chainlink CCIP for Pirex ETH (pxETH) cross-chain transfers further emphasizes Chainlink's growing influence in the Web3 space. The integration aims to make pxETH accessible across different blockchains to enable cross-chain compatibility.
Supply is running low on LINK exchanges.
Additional clues explaining ChainLink's recent reversal can be found by tracking LINK on crypto exchanges (the yellow wave on the Santiment chart below).
Notably, supply on LINK exchanges has hit a four-year low, below 15 percent. The dwindling supply on exchanges suggests traders prefer to hold LINK tokens instead of selling them for other assets. Therefore, LINK's ability to continue its trend increases if demand does not decrease.
This coincides with a 6% increase in the number of wallets holding more than 0 LINK, which “resets at 713,560, close to previous highs,” according to crypto data Intelligence Sentiment, posted on January 15 by X.
Simply put, chainlink smallholders can trust that its value will increase even more in the near future.
Related: 3 Reasons Why Chainlink Value Will Increase 20% in the New Year
The price of LINK is looking for a V-shaped recovery
LINK's price action since December 27, 2023 has formed a V-shaped recovery chart pattern on the daily chart.
A V-shaped retracement is a bullish pattern that occurs when an asset experiences a significant price increase after a severe downturn. The price ends when it moves to the resistance at the top of the V formation.
LINK seems to be in the same direction as it is currently trading with the pattern resistance line at $17.
Rising moving averages and a positive moving average converging divergence (MACD) indicator also provide insight into bullish momentum building in LINK price.
When the 12-day EMA (blue line) crossed above the 26-day EMA (orange line), the bullish cross sent by the MACD on January 14 was still in play, indicating that market conditions would continue. Upward favor.
The Chainlink LINK (LINK) token experienced a 7% increase to trade at $16 on January 17, a level seen on December 29, 2023. This strengthened its position as the 11th largest cryptocurrency by market capitalization (excluding stablecoins).
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
