The crypto market capitalization has fallen by more than 1% in the past 24 hours, causing losses across the market. Top coins like Bitcoin and Ethereum have taken the hit, losing 3% and 4% of their gains over the past week, respectively.
However, Chainlink (LINK) withstood prevailing bearish market forces during this attack, with a gain of 6.51% on the weekly chart. Moreover, the token has registered a price increase of 1.68% in the last 24 hours.
Amid the upswing, LINK has crossed the $7 price mark; Could it follow the prevailing bullish waves to reach new highs? Let’s find out.
ChainLink’s daily active address hits a two-month high
LINK’s price increase comes amid a significant increase in the number of active unique addresses on the network. Facts from leading on-chain analytics firm Santiment shows that Chainlink’s unique addresses exceeded 3,900 for the first time since July 21.
Furthermore, this increase indicates increased networking activity and engagement, reflecting increasing community interest and involvement. Furthermore, increasing the number of unique active addresses is often synonymous with increasing use and adoption of the network’s native token, LINK. And this was reflected in the increase in LINK’s market value over the past seven days.
In addition, a update regarding the adoption of Chainlink, it appears that four of the network services are integrated into six different chains. These chains include Arbitrum, Avax, BNB Chain, Etherem, Optimism and Polygon.
Again, these integrations further reflect broader use of the LINK token and greater participation in the Chainlink ecosystem. It shows that more people are adopting Chainlink, putting higher buying pressure on LINK, a plausible explanation for the continued price increase.
Chainlink (LINK) breaks through the $7 resistance; What’s next?
The daily LINKUSD graphic below suggests that LINK is gearing up to reach $8 as it overcomes critical barriers while buying pressure remains high.
After posting notable gains over the past eight days, LINK is trading above two key support levels, USD 5.72 and USD 6.595. The token’s price fluctuated between these key price levels from mid-August to September 18.
Meanwhile, LINK was all the while trading below two critical points, the 200-day and 50-day moving averages ($6,488 and $6,706), before a sharp spike pushed it above $6.8. It maintained the momentum in recent days, breaking the USD 7.00 barrier and now targeting the USD 7.8 resistance level.
LINK is now trading above the 50 and 200 day price levels, indicating strong bullish momentum in the market. If the continued buying frenzy continues, LINK could reclaim the yearly high of $8,898 recorded on November 7, 2022. And if purchasing power continues to increase, the token could even set a new record in the coming days.
Although LINK has regained more than 21% of last month’s gains during the ongoing rally, the token remains 9% off its year high, and the bulls need to increase momentum for the token to regain this level.
Featured image from Pixabay and chart from TradingView.com