Key Points
- Chainlink (LINK) has seen a significant increase in its network activity and price.
- Despite positive metrics, LINK has experienced a minor price drop in the last 24 hours.
Chainlink (LINK) has seen a surge in its popularity and price recently. This increase coincided with a slight decrease in Bitcoin (BTC) dominance.
Increasing Interest in LINK
IntoTheBlock, a blockchain analysis firm, highlighted several developments related to Chainlink. This included a significant rise in LINK search trend data, indicating growing interest in the token. This increased interest positively impacted the blockchain’s network activity, with the number of transactions starting to spike. Specifically, LINK recorded 5.82k transactions in the last day, nearing its monthly high.
However, the rise in transactions did not result in a significant increase in new users. Despite this, investor interest in LINK has been on the rise, with net withdrawals from exchanges indicating accumulation behaviour. Furthermore, LINK whales have been accumulating, with addresses holding over 0.1% of the supply showing a net accumulation of 25 million LINK over the past month.
LINK Price Rally
The increased accumulation has helped LINK start a bull rally, with the token’s price increasing by over 20% in the last seven days. At the time of writing, LINK was trading at $16.22 with a market capitalization of over $9.5 billion. Consequently, LINK’s MVRV ratio saw a significant increase, suggesting more investors were in profit. Its Open Interest also increased, hinting at a continued price rally.
Santiment, a market intelligence platform, recently noted that bullish sentiment around LINK has increased, with Chainlink witnessing the most bullish sentiment in over a year. However, despite these positive metrics, LINK’s price has dropped by nearly 2% in the last 24 hours.
An analysis of LINK’s daily chart indicates that the MACD remains in the buyers’ favor, and the Chaikin Money Flow (CMF) has seen a sharp uptick. This suggests that the latest price correction may be short-term, and that LINK could resume its rally soon. However, LINK’s price has touched the upper limit of the Bollinger Bands, which could be cause for concern.
