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Blockchain-based oracle service provider Chainlink (LINK) continues to show better performance despite the overall selling pressure in the altcoin market. The popular altcoin is striving to surpass $7.5 for a significant breakthrough with a value increase of nearly 4% in the last 24 hours. Breaking the $7.5 resistance is crucial for the continuation of the price rally.
Chainlink Might be Starting a Bull Cycle for LINK
Experienced cryptocurrency analyst Michael van de Poppe stated that the outlook for LINK is extremely positive, saying, “Chainlink has probably completed its consolidation and will start a bull cycle in the fourth quarter of 2023. It is similar to the awakening of the rest of the market. It is now a matter of time for people’s sensitivity to start changing.”
Another cryptocurrency analyst, Rekt Capital, also mentioned that Chainlink made a significant breakthrough with the price chart shared on his personal X account. Looking at the price chart, LINK can be seen breaking the descending trend line that has been maintained since April 2021 on a weekly time frame.
Furthermore, Chainlink’s wallet address activity reached its highest level in the past two months earlier this week. This increase in network activity corresponds to active user participation and demonstrates increasing enthusiasm and participation among investors. Moreover, the increase in unique active wallet addresses is directly related to the greater usage and acceptance of the native asset LINK. This can clearly be seen from the increase in LINK’s market value last week.
Potential for LINK to Refresh its All-Time High
Currently, LINK is trading above both the 50-day and 200-day moving averages, indicating strong upward momentum in the market. If the current buying frenzy continues, LINK has the potential to reach its annual peak of $8,898, which it achieved on November 7, 2022. Furthermore, if the buying momentum continues to increase, LINK has the possibility of reaching its all-time high in the coming days.
Additionally, as the supply of LINK decreases on centralized cryptocurrency exchanges (CEXs), the selling pressure on the altcoin also decreases. The significant increase in the price of LINK corresponds to a sharp decline in supply on CEXs. According to data from crypto analysis platform Santiment, Chainlink’s supply has decreased by 16.4% in the last ten days. The decrease in supply on CEXs indicates a positive outlook in terms of reducing selling pressure.
Santiment also noted that LINK has been moved from CEXs to cold wallets and effectively taken out of circulation. This development supports the bullish scenario for the popular altcoin.
