The network activity of Chainlink [LINK] has touched sky-highs of late. Data from IntoTheBlock revealed that LINK has hosted nearly 150 million tokens in the past week, coupled with an increase in active and new addresses. All these have propelled network activity to hit a two-year high, indicating robust demand for the leading Oracle network. Price-wise, LINK overcame the year-long hurdle to break through the $20 mark.
The surge has coincided with Bitcoin being up $50k recently. Before BTC’s revival, LINK defied the general market trend and steered investors’ attention away from the dominant crypto. The major factor that contributed to Chainlink’s upward movement was the activation of dormant wallets, previously inactive for an extended period. This sudden rebound triggered the highest age-consumed spike of 5.38 billion [calculated by multiplying the coins moved by the number of days those coins had been dormant].
While Chainlink’s price rally might project a bullish thesis, technical indicators, and on-chain data indicate that the LINK price is “overextended” and might suffer retracement. Data from blockchain analytics platform SpotOnChain shows that a whale moved 245,000 LINK worth $5 million to Binance.
The anonymous wallet in question, known only by “0x2a1,” shuffled multiple funds from the Binance crypto exchange. In total, 495,057 LINK tokens [valued at $7.5 million] at an average rate of $15.13 per token between Jan. 28 and Feb. 7, 2024, were withdrawn from the trading platform.
Chainlink’s Price: Expert Predicts $19 Support Check
Analysts have noted that the token redistribution and transferring them to exchanges could mean an intent to sell at current prices, even though the whale’s wallet still holds 250,000 LINK tokens valued at around $5 million.
Market experts continue to paint a bullish picture, citing LINK’s ascending channel. “Since Jan. 26, LINK price action has painted a series of higher highs and higher lows, leading to the formation of an ascending parallel channel on the daily chart. This projects a rise in price toward the upper boundary of the channel, which currently sits at $21.”
According to Rekt Capital, a clear-cut closing of the channel could push the price upward to $25. But before that, there might be a retracement or a test of the support level at $19. The outcome would be a key factor in the resumption of the upward trend.