Amidst the overall downward trend in the cryptocurrency market, the local presence of the Blockchain oracle network Chainlink has shown strong performance, with the price of LINK surging over 10% last week. The price of the popular altcoin LINK has surpassed the $7 level with a more than 5% increase in the past 24 hours, and its market value has exceeded $4 billion.
Amidst the recent price increase, Chainlink’s wallet address activity has reached its highest level in the past two months. Chainlink has outperformed the overall cryptocurrency market, surpassing the $6.80 resistance level. The number of different wallet addresses interacting with the Chainlink network reached 3,964 yesterday, reaching the highest point in the past two months.
LINK surpassing the $7.5 resistance level means it has recovered all the losses during the mid-August crash. Although the recent 21.55% increase in price has helped the altcoin regain a significant portion of its losses, it still needs more momentum to maintain its upward trajectory. A sustainable rally will only occur if Chainlink successfully surpasses the $7.4 resistance and reaches the $7.5 level.
However, if the LINK bulls fail to further push the momentum, the price of the popular altcoin could drop to $6.0. This is indicated by the three Exponential Moving Averages shown in the above chart, which have fallen near this level.
Considering the strong bullish momentum, the chances of LINK’s price facing a significant drop are quite low. On-chain activity, especially the decrease in LINK held in wallet addresses on cryptocurrency exchanges, primarily indicates an upward trend. The total amount of LINK held in wallet addresses of cryptocurrency exchanges decreased by more than 5 million, equivalent to approximately $35.4 million, throughout the past week. This decrease indicates a decrease in selling pressure.
The noticeable accumulation of LINK by whales further strengthens this positive sentiment. During the recent rally, wallet addresses holding between 10,000 and 100,000 LINK accumulated approximately 3 million LINK, worth around $21 million.
Blockchain oracle network Chainlink has recently integrated with the Ethereum Layer 2 scaling protocol Arbitrum (ARB) to facilitate the development of cross-chain decentralized applications. In a joint announcement on September 21, the two protocols announced the mainnet launch of the Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One. This collaboration provides developers with access to Chainlink’s solution by leveraging the high-efficiency, cost-effective scaling capabilities of Arbitrum.
The integration of CCIP and Arbitrum One aims to unlock a wide range of applications, including cross-chain tokenization, collateralization, blockchain-based games, and data storage and computation.