After a week dominated by Bitcoin and its positive performance, Chainlink (LINK) has emerged as one of the best performing crypto markets this weekend. This comes after a long period of relative silence and sideways movement for the token’s price. The abrupt and significant increase in the Chainlink price may have surprised many investors, but it only highlights the volatile nature of the crypto market.
Chainlink Price Rises 22% in One Day – What’s Next?
According to data from CoinGeckoChainlink’s price has risen by more than 22% in the past 24 hours. Over the past day, LINK’s double-digit price explosion pushed the altcoin past the $9 mark, resulting in a multi-month high. LINK’s performance appears to be even more remarkable on the weekly chart, up nearly 30% in the past seven days.
While Chainlink is retaining a substantial percentage of its gains, the token’s price appears to be encountering significant resistance in the $9.5 zone. This reflects the uncertain sentiment of investors who appear unsure whether the current rally is a fluke or a bullish hint. Nevertheless, one crypto analyst expects LINK to build on this positive momentum.
In a post on The analyst hypothesizes that a close above $8.2 on the weekly time frame will see LINK price rise to $12.54. This represents a significant 30% projection from the current price point.
$LINK broke out after 512 days of consolidating into a wedge.
With a weekly close above $8.2 (most likely) we’ll head straight to $12.54 and beyond 🚀
I don’t think we will see a retest of the breakout point, pending an upward cotinuation at the next weekly candle 🤝 https://t.co/EJcj2XO0oJ pic.twitter.com/bXgRkcv6jG
— Mags (@thescalpingpro) October 22, 2023
At the time of writing, the Chainlink token is valued at $9.36. According to CoinGecko data, LINK has seen a 468% increase in its trading volume in the last 24 hours.
What’s behind the multi-month high?
A dive into Chainlink’s network activity can help understand the driving force behind LINK’s latest price rebound. Interestingly, a recent report from on-chain analytics platform Santiment provides insight into the network’s activity levels.
Santiment on X’s data report shows that Chainlink has experienced increased activity in recent days. Specifically, the network witnessed significant growth this weekend – reaching its highest level in three months – in terms of whale transactions, active addresses and trading volumes.
Chainlink network activity surges to three-month highs | Source: Santiment on X
As the highlighted chart shows, LINK saw over 220 whale transactions above $100,000 on Saturday, October 22, while nearly 5,000 unique addresses interacted with the altcoin on the same day. In addition, Chainlink recorded more than 800 million in LINK trading volume on Saturday.
While these data points do not indicate exactly whether buying trades are the predominant activity on Chainlink, the subsequent LINK price rally indicates a possible accumulation trend.
Chainlink price on an upward trajectory on the daily timeframe | Source: LINKUSDT chart on TradingView
Featured image from Shutterstock, chart from TradingView