Will Chainlink (LINK) be able to reach the $10 mark next week
Date: 2023-07-24 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Chainlink's price has remained relatively stable over the past 15 months. An in-depth analysis of on-chain data reveals a close relationship between the current rally and the renewed interest in cryptocurrencies among the major TradFi players.
In mid-June, LINK entered an uptrend that coincided with Blackrock's application for a spot bitcoin ETF. On July 21, the asset's price hit a three-month high of $8.20 amid growing global demand for seamless interoperability between the DeFi and TradFi ecosystems.
Let's figure out whether the renewed interest in cryptocurrencies among institutional investors will be a catalyst for a full-fledged Chainlink rally.
Chainlink Whales Take Action
According to analytics platform IntoTheBlock, whales have begun to show interest in Chainlink again. In the period from May 31 to July 20, the number of transactions exceeding $ 100 thousand increased by 815% - from 26 to 238.
As noted above, such a significant increase in the number of large transactions is a bullish signal for several reasons. First, institutional investors are buying up LINK in preparation for the approval of a spot Bitcoin ETF, which will spark demand for information exchange between DeFi and the TradFi space.
Secondly, whale transactions provide greater liquidity, which allows other investors to make high-volume transactions without significantly affecting the price of the asset.
The volume of LINK transactions continues to grow
The growth in the volume of daily transactions in the Chainlink ecosystem confirms the possibility of a bullish scenario. According to Santiment, between June 10 and June 21, the figure rose from 5.56 million to an impressive 45.35 million tokens, indicating an increase in demand and increased interest among network participants.
A surge in whale activity and transaction volume could lead to an increase in the price of LINK to new peaks in 2023 in the coming days.
Chainlink Price Prediction: $10 Within Reach
The factors listed above indicate that LINK is likely to reach the $10 mark. However, on the way to it, the asset will face serious resistance from 40,000 addresses that bought 32 million tokens at an average price of $9.52. If they want to take profits, the asset's quotes may fall below $7.
The 21,000 wallets that purchased 47.3 million coins at an average price of $7.64 will provide some support to Chainlink. But in case of failure, he will fall to $6.5.
