Chainlink (LINK) has been gaining significant attention in recent weeks, both in terms of price movement and on-chain developments. Crypto analyst Ali Martinez recently shared his insights on the potential price action of Chainlink, emphasizing the establishment of a strong support zone between $6.63 and $6.88. Remarkably, around 29,000 addresses have purchased over 295 million LINK within this price range, indicating a considerable level of investor confidence based on data from analytics firm IntoTheBlock. As long as Chainlink is trading above this support zone, it is expected that investors will remain bullish. Notably, Soon-chain data reveals that no significant resistance levels lie ahead, further reinforcing the positive sentiment.
Ali points out that numerous LINK whales have recognized the $6.63-6.88 zone as a “robust” price support and are actively accumulating more tokens. Within the past 14 days, LINK whales have purchased an estimated 13 million LINK, equating to approximately $91 million. This indicates a strong belief in the future value and potential of Chainlink.
While the aforementioned developments suggest a bullish LINK market, Ali advises traders who anticipate a market breakout to exercise patience. He draws attention to the declining network activity on the Chainlink network over the past three weeks. The number of large LINK transactions has decreased from 527 to 118. Ali concludes that a boost in this metric is likely to precede any market breakout.
As of this writing, LINK is being traded at $7.44, representing a 1.36% decline in the last day, according to CoinMarketCap data. However, over the past seven and thirty days, the token has experienced a 3.66% and 17.67% increase, respectively. These figures demonstrate the potential for positive price movement in the future.
Apart from Ali’s market analysis, there have been other positive news updates related to Chainlink. Market intelligence firm Santiment reported that LINK recently observed its highest level of dormant coin movements in the past six weeks. This decline in LINK’s mean dollar invested age curve suggests a decrease in the token’s time spent in wallets, which often serves as a precursor for a rise in market cap. Additionally, Chainlink has displayed consistent growth in its development activity over the past few months, signifying ongoing progress and innovation within the project.
Chainlink’s recent performance and on-chain developments highlight its potential as a promising token. The strong support zone and accumulation by LINK whales indicate a positive sentiment among investors. While traders may need to be patient for a market breakout, the declining network activity may serve as a precursor for future growth. Furthermore, recent positive news, such as dormant coin movements and increased development activity, further reinforce the potential value of Chainlink. With its continuous upward trajectory, Chainlink remains a token to watch in the cryptocurrency market.
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