Chainlink (LINK) has been one of the most popular tokens in recent weeks due to a combination of an overall positive price movement and exciting on-chain developments.
Following a recent buying spree in the LINK market, crypto analyst Ali Martinez has taken to social media platform X to provide some insight into the token’s potential price action.
29,000 wallets buy 295 million LINK and are an important level of support
On August 11 Ali Posted on X stating that Chainlink has created a strong support zone between $6.63 and $6.88 as approximately 29,000 addresses purchased over 295 million LINK at this price range based on data from analytics firm IntoTheBlock.
Going on, he postulated that as long as the altcoin traded above this price zone, investors would likely remain bullish on an ongoing basis, especially as Soon-chain data shows no significant resistance levels ahead.
Source: IntoTheBlock
According to Ali, a large number of LINK whales have already recognized the $6.63-6.88 zone as “robust” price support and are actively collecting more tokens. He highlighted that LINK whales have purchased an estimated 13 million LINK whales worth about $91 million in the past 14 days.
While these developments can be considered indications of a bullish LINK market, Ali argues that traders anticipating a market breakout still need to exercise some patience.
Using data from IntoTheBlock, the crypto analyst draws attention to declining network activity on the Chainlink network over the past three weeks.
Ali stated that during this period, the number of large LINK trades dropped from 527 to 118. He concluded his market report by stating that a boost in this metric likely precedes a market breakout.
At the time of writing, LINK is trading hands at $7.44, down 1.36% on the last day, according to data from CoinMarketCap. However, the token is up 3.66% and 17.67% respectively in the past seven and 30 days.
More good news for Chainlink
In addition to Ali’s market analysis, there has been other positive news about Chainlink in recent days. Also, on August 11, market research firm Santiment reported LINK had experienced the highest level of dormant coin movement in the past six weeks.
According to Santiment, this represented a drop in LINK’s average age curve in dollars invested, indicating a decrease in the token’s time in portfolios, which usually presages a rise in market cap.
In addition, Chainlink maintained an increase in its development activity in the past months. Based on data from Santiment, development activity on Chainlink increased from 1579.12 on May 31 to 1706.48 on August 3.
LINK trading at $7.432 on the daily chart | Source: LINKUSD chart on Tradingview.com
Featured image of Stockhead, chart from Tradingview