Chainlink's LINK Token Thrives Amidst Broader Market Fluctuations
Summary:
Chainlink's LINK token experienced a 7% increase in January 17, making its trading price $16, last seen on December 29, 2023. This boom strengthened its status as the 11th largest cryptocurrency by market capitalization. The growth happened alongside Bitcoin's 2% reduction during the same period. LINK also outperformed Ether and SOL. Chainlink's partnerships and collaborations with SingularityDAO and SWIFT, along with Redacted's recent integration of Chainlink CCIP, contribute to LINK's rise. Furthermore, the decreased supply of LINK on exchanges and increased number of wallets holding LINK suggest a promising future for the currency. However, all investments carry risk and require research.
On January 17th, the currency token LINK from Chainlink experienced a notable increase of 7%, trading at a rate of $16, a rate not seen since December 29, 2023. This cements its place as the 11th top cryptocurrency in terms of market capitalization with stablecoins excluded. It's of note that while LINK sees a rise in value, Bitcoin (BTC) has seen a 2% decrease in the same timeframe. Looking at Ether (ETH) which dropped by 0.65% and SOL (SOL) increasing by 5.5%, LINK's performance really stands out. Reviewing news and Chainlink’s projections shows promise in the project’s oracle and decentralized computing solutions, driven by the prospect of real-world asset tokenization and signs of institution level adoptions. But, will LINK be able to sustain this rally? Let's explore.
A variety of recent developments have helped elevate LINK's position compared to its peers. Standouts include Chainlink Lab's collaborations with SingularityDAO, a decentralized platform, and Swift, establishing its role in the RWA sector, which contributed to its bullish trend.
Chainlink's strategic partnership with SWIFT opens up large capital flows from traditional finance markets into the blockchain industry, simplifying the transfer of tokenized value worldwide and improving cross-border transaction fluency and accessibility.
Another highlight is the integration of Chainlink's CCIP by Redacted for cross-chain transfers of Pirex ETH (pxETH), further establishing Chainlink's influence in the Web3 space. This integration aims to make pxETH accessible across various blockchains to facilitate cross-chain interoperability.
Additional factors explaining LINK's recent uptrend come from data monitoring the LINK supply across cryptocurrency exchanges. Notably, LINK’s supply on exchanges is at a four-year low, less than 15%. A decreased supply on exchanges suggests that traders prefer to hold onto their LINK tokens rather than trading them, which implies LINK could maintain its current trajectory if demand remains stable.
Simultaneously, a 6% increase has been observed in wallets holding at least a single LINK token, almost equaling its previous peak at 713,560. According to crypto data insights from Santiment, smaller holders of Chainlink might expect its value to rise more in the foreseeable future.
When we look at LINK's price movement since December 27, 2023, a V-shaped recovery can be observed on the daily chart. Such a recovery often indicates bullish momentum for an asset, characterized by a sharp price increase after a steep fall, culminating when the price rises to the resistance at the top of the formation.
With LINK trading near the resistance line of the pattern at $17, a similar trend is discernible. The positive moving average convergence divergence (MACD) indicator and the rising moving averages suggest bullish momentum is building in the LINK price.
Crucially, the 12-day exponential moving average (EMA) crossed above the 26-day EMA on January 14, suggesting that market conditions remain favourable for upward price movement.
Disclaimer: This article isn't meant to serve as investment advice or recommendations. Every investment comes with risks, and readers should make decisions based on their individual research.
Published At
1/17/2024 11:16:08 PM
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