Recently, Chainlink [LINK] has been making notable progress, thanks to its technological advancements and significant improvements in its overall market performance. By introducing CCIP Private Transactions for banks and integrating with Bitcoin, Chainlink has solidified its position as a frontrunner in cross-chain tokenized asset settlements.
Following ANZ’s pilot initiative and an AI-powered project to handle unstructured financial data, LINK has witnessed a 4.46% increase in price over the last 24 hours. Currently trading at $11.79, LINK seems to be edging towards a crucial resistance level.
The pressing question now is – Can this positive momentum drive LINK to reach new peaks?
Is LINK Poised for a Price Surge?
An analysis of LINK’s chart demonstrates a symmetrical triangle pattern that has been forming since mid-July. Presently, LINK is trading close to the upper boundary of this triangle, around $11.77. Furthermore, the Relative Strength Index (RSI) is at 54.98, indicating a bullish advantage for LINK.
Furthermore, the Moving Average Convergence Divergence (MACD) has recently shown a bullish crossover, hinting at potential upward momentum. Should LINK break out of the triangle, the next target could be the psychological barrier at $13.
Positive On-Chain Indicators Point to Increased Utilization
On-chain metrics reveal a positive outlook for Chainlink. The number of active addresses has risen by 1.11% in the last 24 hours, reaching 176.45k. This growth signals an increase in interest and activity within the Chainlink ecosystem.
Moreover, the transaction count has also surged by 1.18%, indicating a higher adoption rate of the platform’s decentralized services. Combined, these indicators support the bullish sentiment, showcasing heightened network participation.
Decline in LINK Exchange Reserves Suggests Supply Constraints
Interestingly, the amount of LINK held in exchange reserves has decreased by 0.27% over the past week, reaching 163.97 million tokens. This drop implies that investors are transferring their holdings from exchanges to private wallets.
This shift could lead to reduced selling pressure, potentially propelling the price upwards if demand continues to increase.
Long Liquidations Boost Bullish Momentum
Another factor contributing to the potential uptrend for LINK is the disparity between long and short liquidations.
Data shows that $185.22k worth of long positions were liquidated compared to $131.73k in short positions. This skew towards long liquidations reflects traders’ confidence in an upward movement, further fueling LINK’s breakout.
Currently, Chainlink seems well-equipped for a breakout, supported by an uptick in network activity, dwindling exchange reserves, and optimistic market sentiment.
If LINK successfully surpasses the $12 mark, it could target higher resistance levels swiftly. However, traders should exercise caution, as the $12 resistance level might trigger a retracement before any substantial gains are realized.