Chainlink (LINK) Brushes Off Market Downtrend, Scores 11% In Last Week
September 27 2023 - 3:00PM
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Chainlink has remained bullish despite the bearish pressure in the
broader crypto market. The crypto closed bullish at $7.4 yesterday,
September 26, with over 7% increase. LINK remains bullish,
with an 11% seven-day price increase and over 2% gain in the last
24 hours. But while the token’s price continues to increase, data
shows the trading volume has declined 17% in the last 24 hours.
What could be the reason behind this contradiction? Chainlink Price
Continues To Surge In an X post on September 24, Chainlink network
announced it had recorded multiple integrations across six
blockchains. These include Arbitrum, Ethereum, Optimism, Avalanche,
Polygon, and BNB Chain. Also, yesterday, September 26, gaming
platform BetSwirl announced that it integrated Chainlink’s CCIP
across Ethereum, Polygon, Avalanche, and Arbitrum. According to the
post, this CCIP integration will help “BetSwirl enable seamless,
secure, and reliable cross-chain token transfers” Related Reading:
XRP Price Analysis: 4-Month Chart Dynamics Decoded By Crypto
Analyst This increased adoption across multiple chains expanded
Chainlink’s user base, a plausible factor behind LINK’s resilience
amid the prevailing bearish market. Although LINK briefly slipped
off the $7.5 level to $7.3 yesterday, it has since recovered
momentum. Given the ongoing movement, the crypto asset could break
the $7.8 resistance and record higher highs soon. Meanwhile,
Chainlink (LINK) is number 3 among the top weekly gainers after CRV
and PEPE. It has also secured a position on the top daily gainers’
chart. Although the price strides are bullish, the trading volume,
down 17%, raises concern about whether LINK can sustain the rally.
It indicates reduced trading activity, a possible sign that buyers
have reached saturation and paused to weigh their next move.
This setup bodes badly for LINK as it could signal the entrance of
sellers, which will exert downward pressure on the token’s price.
Price Surge Drops Chainlink (LINK) Supply On Crypto Exchanges
According to Santiment’s report on September 24, Chainlink remains
one of the best-performing cryptocurrencies in September. It
outlined that, unlike most assets, LINK’s price often records an
initial boost when holders move their tokens from exchanges.
Santiment noted that the asset’s price increased 23% in two weeks
as the exchange supply flowed back to cold wallets. Also, the
analytics platform reported that LINK exchange supply increased by
17.2%, reaching a 2023 high on September 14. However, on September
24, 10 days later, the token’s exchange supply dropped to 16.4%.
This observation is a plausible reason behind Chainlink’s declining
trading volume. Related Reading: Early Rejection Of 21Shares
Spot Bitcoin ETF Sparks Concerns Meanwhile, as of the time of
writing, LINK trades at $7.64, with a 2.88% price increase in the
last 24 hours. The token trades above the simple moving averages of
$6.494 and $6.719 and two key support levels. LINK is
approaching the overbought area, forming a bullish candlestick as
buyers vie to conquer the $7.823 resistance. Featured image from
Pixabay and chart from TradingView.com
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