Oracle service provider Chainlink (LINK) has been on investors’ radar recently with more than 8% gains over the last week. On Monday, January 15th, the LINK price surged all the way to $16. However, as of press time, the Chainlink price is down 2.69% trading at $15.07, and has a market cap of $8.5 billion.
Chainlink Exchange Supply Drops to 4-Year Low
In a recent analysis by on-chain data provider Santiment, Chainlink (LINK) experienced a noteworthy uptick over the weekend, reaching $15.82, marking its highest point in the past two weeks.
The data reveals further a significant development as the supply of LINK on exchanges has dropped below 15%, a level not witnessed in approximately four years. Additionally, the number of wallets holding more than zero LINK coins is now approaching 6% of its all-time high, indicating heightened activity and potential market dynamics for Chainlink.
Furthermore, according to insights from crypto analyst Ali Martinez, Chainlink (LINK) has established a robust demand zone within the price range of $14.8 and $15.2. Notably, this zone attracted the interest of 17,650 addresses, leading to the acquisition of a substantial 85.12 million LINK tokens.
With the absence of significant resistance levels in the immediate future, the analysis suggests that LINK could be poised for a potential upward movement, with a target projection towards the $20 mark.
The LINK Price Rally to Continue?
In the previous month, there has been a significant rise of 4% in Chainlink’s (LINK) value amidst the ongoing financial climate characterized by the interplay between bullish and bearish forces. Currently, the bullish camp seems to be gaining dominance in this financial struggle.
Over the recent weekend, LINK experienced a slight breakthrough and reached a high point of $15.86, which it hadn’t touched in two weeks. At present, the cryptocurrency is trading above $15, showing promise to analysts who anticipate positive price trends in LINK’s future.
The current state of LINK’s price is crucial, as surpassing the $17 mark could potentially push it further, inching closer to the $20 threshold and even reaching new highs. However, a decline might result in losing its vital support at $13.
Should LINK’s value go below this level, particularly touching the 100-day Simple Moving Average (SMA) at $13.19, it would nullify the bullish outlook, potentially triggering a more significant downturn. These scenarios emphasize the cryptocurrency market’s inherent volatility and unpredictability.
Nevertheless, it is important to bear in mind that investors must thoroughly analyze various factors and conduct due diligence before making any investment decisions because the cryptocurrency market is inherently risky. Nonetheless, Chainlink (LINK) continues to captivate investors due to its recent performance and potential for future growth.