Chainlink’s recent price increase provided insights into the behavior of its holders. Some quickly capitalized on the rise, while others were less fortunate. Regardless of the process, on-chain analysis shows LINK reaching a level it hadn’t in months, indicating a significant move for the token price. On July 21, Chainlink’s price reached $15 for the first time in over 30 days.
What’s Happening with Chainlink?
Following this increase, data from Santiment reveals that the network’s Realized Profit/Loss rose to 106.55 million. Realized Profit/Loss on the network indicates whether investors are selling at a loss or making gains. The sudden rise to 106.88 million in the positive region, as seen with LINK, shows that many investors are profiting from the increase.
However, the rise in selling pressure caused the price to trade at $14.36 at the time of writing. Therefore, some holders missed the party, and as of this writing, the network’s Realized Profit/Loss is at -13,000, indicating that realized losses are now dominant.
The decline in realized profits could be a good sign for LINK’s price. This is because the selling pressure decreases, allowing the price to stabilize or enter another upward trend. The increase in new and active addresses on the network also supports potential growth. According to IntoTheBlock data, both metrics have increased over the past seven days.
This increase indicates that a new group of market participants is adopting LINK and adding the token to their portfolios. Similarly, it means that users are continuously interacting with the Chainlink network. As this continues or develops, LINK’s potential for higher trading increases. However, understanding that price movement is not limited to on-chain activities and that technical conditions also play a role adds more confidence to the prediction.
LINK Chart Analysis
From a technical perspective, LINK’s price could rise after breaking out of a falling wedge. In non-technical terms, a falling wedge is a formation created by two descending trend lines. The falling wedge is mistakenly thought to be bearish because the trend lines are descending. However, this is not the case, as the selling pressure decreases as the price drops. Therefore, it leads to a reversal and a break of the upper resistance.
In the chart below, LINK managed to break the $14.15 resistance. After a slight pullback, a strong buy signal emerged. This is also supported by a positive MACD. The positive reading of the MACD implies that the momentum is positive. If this continues, Chainlink could first reach $15.10 before testing $16.06. However, if holders continue to incur losses, LINK’s price may not reach these targets. In such a case, LINK’s next move could be a drop to $14.13.
