Chainlink (LINK) has remained bullish despite bearish pressure in the crypto market. It closed at $7.4 with a 7% increase. The token has seen an 11% increase over the past week, but trading volume has declined by 17% in the last 24 hours. The reason for this contradiction is unclear. Chainlink has recorded multiple integrations across six blockchains, expanding its user base and contributing to its resilience. The token has the potential to break resistance at $7.8 and achieve higher highs. However, the decrease in trading volume raises concerns about sustainability and the potential entrance of sellers. The drop in Chainlink's exchange supply may be one reason for the declining trading volume. Currently, LINK is trading at $7.64 with a 2.88% increase in the last 24 hours and is approaching the overbought area.
Our analysis of the situation
Chainlink, the blockchain platform that never fails to surprise, has proven its mettle yet again. Despite bearish pressures in the broader crypto market, LINK has remained bullish, leaving traders and enthusiasts in awe. With a witty twist of events, let's dive deeper into the latest developments and attempt to unravel the mysteries behind LINK's resilience.
The bull charges on! Over the past seven days, Chainlink's price has surged by a remarkable 11%, accompanied by a solid 2% gain in the last 24 hours. This impressive surge is a beacon of hope amidst the turbulent seas of the crypto market. However, there's an interesting twist that raises eyebrows - the trading volume has experienced a 17% decline in the same 24-hour period. So, what's the deal with this contradiction?
Well, fear not, for there may be some method to this madness. In a recent announcement, Chainlink network revealed multiple integrations across six prominent blockchains, including Arbitrum, Ethereum, Optimism, Avalanche, Polygon, and BNB Chain. If that weren't enough, gaming platform BetSwirl has also integrated Chainlink's CCIP across Ethereum, Polygon, Avalanche, and Arbitrum. According to BetSwirl, this integration will facilitate seamless, secure, and reliable cross-chain token transfers.
The cascading effect of these integrations has not only expanded Chainlink's user base, but it has also added fuel to the bullish fire smoldering beneath LINK's surface. Even though LINK experienced a minor slip-off from $7.5 to $7.3, it quickly regained momentum. With the ongoing movement, all signs point to the possibility of LINK smashing through the $7.8 resistance, potentially reaching even higher highs in the near future.
When it comes to the weekly gainers' chart, Chainlink (LINK) confidently holds the third spot after CRV and PEPE. Not just content with that, LINK has even secured a well-deserved position on the top daily gainers' list. The market is certainly applauding Chainlink's resilience and agility, but there's a lingering concern.
While the price strides remain bullish, the 17% decline in trading volume raises some eyebrows. Such a decrease suggests reduced trading activity, indicating that buyers may have hit saturation and are now taking a momentary pause to carefully weigh their next move. Unfortunately, this also opens the door for potential sellers, who could exert downward pressure on LINK's price.
Interestingly, a report from Santiment sheds some light on the possible reason behind Chainlink's declining trading volume. Unlike many other assets, when LINK holders move their tokens from exchanges, the asset's price tends to experience an initial boost. Santiment highlights that over a two-week period, LINK's price surged by 23% as exchange supply flowed back into cold wallets. However, things took an unexpected turn when, on September 24, the token's exchange supply dropped to 16.4%, down from its peak of 17.2%. This decline in exchange supply could be a contributing factor to the decline in trading volume.
As of the time of writing, LINK is in the midst of an upward trend, currently trading at $7.64, displaying a 2.88% increase over the past 24 hours. The token is comfortably trading above the simple moving averages of $6.494 and $6.719, supported by two key support levels.
With the overbought area looming ahead, it seems buyers are eager to conquer the $7.823 resistance, leaving us all eagerly awaiting the next twist in the Chainlink saga.
Chainlink's bullish spirit remains unwavering, defying the odds and captivating the attention of market participants. As the crypto market continues to evolve, the true potential of LINK awaits its grand reveal. Stay tuned and keep an eye on Chainlink as it embarks on yet another adventure in the realm of decentralized finance.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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