Chainlink’s native token, LINK, experienced a significant surge of 16% between February 9 and February 12, reaching a price of $20.85. This price level has not been seen since January 2022 and has resulted in a market capitalization of $11.67 billion, surpassing Dogecoin (DOGE) to become the 10th largest cryptocurrency by market capitalization.
The rally in LINK’s price is accompanied by an increase in network activity and trading volume. Interestingly, the price is still within the boundaries of an ascending parallel channel, indicating the potential for further upside.
Data from IntoTheBlock reveals a surge in Chainlink network activity, reaching a 22-month high, along with an increase in active and new addresses. Active addresses have risen from approximately 2,800 on January 25 to around 3,210 on February 10. Similarly, the number of new Chainlink addresses has increased from 808 to 1,020 during the same period.
Santiment’s data also shows a significant increase in daily active addresses (DAA), almost doubling from 2,801 on January 25 to over 5,560 on February 12, representing a 97% increase.
On February 1, Eigenpie announced the integration of Chainlink CCIP across Arbitrum and Ethereum. Additionally, Paxos announced the adoption of Chainlink’s new PayPal USD price feed on February 7. Umami DAO, a DeFi-focused platform, has also recently integrated Chainlink Data Streams on Arbitrum.
However, whale activity on exchanges has raised concerns. Technical indicators and on-chain data suggest that the LINK price may be overextended and due for a pullback. SpotOnChain’s data reveals that a whale transferred 245,000 LINK worth $4.9 million on Binance. This same whale, identified by the wallet labeled “0x2a1,” has withdrawn a total of 495,057 LINK worth $7.5 million from Binance between January 28 and February 7, 2024.
Although this wallet still holds 250,000 LINK valued at approximately $5 million, the redistribution of tokens and their transfer to exchanges could indicate an intention to sell at current prices.
On the other hand, LINK’s ascending channel could attract bullish technical traders. Since January 26, the price action of LINK has formed a series of higher highs and higher lows, resulting in the formation of an ascending parallel channel on the daily chart.
This bullish technical formation suggests that the uptrend will continue as long as the price remains within the channel’s boundaries. The upper boundary of the channel currently sits at $21, and a decisive close above this level could push the price towards $25.
Popular analyst Rekt Capital anticipates a potential retest of the support level at $19 before LINK resumes its uptrend.
Please note that this article does not provide investment advice or recommendations. It is essential for readers to conduct their own research and analysis before making any investment or trading decisions.