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October 31, 2023

Chainlink Price Surge and Potential Price Increase: Caution for Fresh Entry

Natasha Fernandez
Written byNatasha FernandezWriter
Researched byNikos PapadopoulosResearcher

The Bitcoin price is currently consolidating around $34,200 levels, while altcoins like Solana (SOL), Cardano (ADA), and Chainlink (LINK) continue their bullish rally.

Chainlink Price Surge and Potential Price Increase: Caution for Fresh Entry

Chainlink Price Surge

The Chainlink price has experienced a staggering 6.6% increase over the last 24 hours, reaching closer to $12. In the past 10 days alone, the LINK price has gained an impressive ~45%, driven by strong investor activity.

Potential Price Increase

Crypto analyst Ali Martinez has observed that Chainlink has successfully breached an ascending triangle pattern on its hourly chart. This bullish formation suggests a potential 14% price increase, possibly propelling $LINK towards the $13 mark.

Caution for Fresh Entry

Today's LINK price rally to $11.50 has been supported by a 90% surge in the 24-hour trading volume. However, investors considering a fresh entry at this point should exercise caution as on-chain data indicates a drop in trading activity.

On-chain Data Analysis

Active Addresses

Chainlink's impressive performance can be seen in the CryptoQuant chart, which shows a 3-month high of 8,086 Active Addresses on October 23. However, in just 24 hours after this milestone, LINK's price surged to $11.50, a level not seen since 2022. Unfortunately, in the week following October 23, LINK's Active Addresses experienced a significant decline, dropping to 3,233 by October 29. This marks a remarkable 60% reduction in daily network engagement in just one week. A decrease in Active Addresses is often seen as a bearish sign, suggesting reduced demand for the project's services.

Network Growth

Santiment reports a similar trend in the creation of new addresses on the Chainlink network. The chart reveals that Chainlink Network Growth reached its highest point in 110 days, reaching 2,465 on October 23. However, like the decline in Active Addresses, Network Growth figures have also seen a sharp drop, falling by 60% to 1,008 new addresses as of October 29. A decrease in Network Growth can have a negative impact on the prices of the native token of the ecosystem.

Conclusion

While Chainlink has experienced a significant price surge and breached a bullish formation, caution is advised for investors considering a fresh entry. The on-chain data analysis indicates a drop in trading activity, with a notable decrease in Active Addresses and Network Growth. These factors suggest reduced demand for Chainlink's services and may have a negative impact on the token's price.

About the author
Natasha Fernandez
Natasha Fernandez
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Natasha "CryptoQueen" Fernandez bridges the gap between blockchain buzz and casino charisma. From New Zealand's serene landscapes to the volatile world of crypto, she's making waves in the online gaming sphere. With CryptoCasinoRank, she paints a future where chips meet chains seamlessly.

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