Chainlink (LINK) surges 6% weekly amid market correction.

Chainlink (LINK) surges 6% weekly amid market correction.

Blockchain Industry: Chainlink’s Resilience Amid Market Decline

The cryptocurrency market has experienced a slight dip, affecting major coins like Bitcoin and Ethereum, which have lost 3% and 4% of their value over the past week. However, amidst this market downturn, Chainlink (LINK) has shown resilience, holding strong with a 6.51% weekly gain. In the last 24 hours alone, LINK has seen a 1.68% increase in price, breaking past the $7 mark. This raises questions about whether it can ride the current bullish wave to achieve new highs.

One of the reasons for LINK’s price surge is the significant increase in active unique addresses on the Chainlink network. According to data from Santiment, a leading on-chain analytics firm, Chainlink’s unique addresses have surpassed 3,900 for the first time since July 21. This indicates a higher level of network activity and engagement, reflecting the growing interest and involvement from the community. The rise in unique active addresses is often associated with increased usage and adoption of the network’s native token, LINK. This increase in adoption has likely contributed to the rise in LINK’s market value over the past seven days.

Additionally, Chainlink has made notable progress in terms of adoption. Four of the network’s services have been integrated across six different chains, including Arbitrum, Avax, BNB Chain, Ethereum, Optimism, and Polygon. These integrations further highlight the widespread usage of the LINK token and increased participation in the Chainlink ecosystem. The growing number of people adopting Chainlink puts upward pressure on LINK’s price, providing a plausible explanation for its ongoing surge.

LINK’s price currently hovers at $7.24 in the daily chart. | Source: LINKUSD price chart from TradingView.com

A closer look at the daily LINKUSD chart suggests that LINK is gearing up to reach $8, as it successfully conquers critical price barriers with sustained buy pressure. Throughout mid-August to September 18, LINK traded between two key support levels: $5.72 and $6.595. During this period, the token remained below the 200-day and 50-day moving averages, namely $6.488 and $6.706. However, a sharp spike pushed the price above $6.8, leading to its recent breakthrough of the $7 barrier. With the current momentum, the next target for LINK is the $7.8 resistance level.

Furthermore, LINK is currently trading above both the 50-day and 200-day price levels, indicating a strong bullish trend in the market. If the buying frenzy continues, LINK has the potential to reclaim its year-high of $8.898, achieved on November 7, 2022. If this upward momentum gains even more strength, the token could potentially set a new record high in the upcoming days.

However, despite the ongoing rally and the recovery of more than 21% of its previous month’s gains, LINK still remains 9% below its year-high. To surpass this level, bulls would need to increase the momentum for the token.

Conclusion

Chainlink’s performance in the face of a market decline showcases its resilience and growing popularity. The increased activity and engagement on the Chainlink network, along with its integrations across various chains, have contributed to the positive price movement of the LINK token. As LINK continues to break resistance levels and trade above critical price points, it has the potential to climb even higher, aiming to reach new record highs. However, it is essential to monitor market conditions and the sustained momentum of buying interest to determine the future prospects of LINK.

Featured image from Pixabay and chart from TradingView.com

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