Chainlink Seeks a Rebound to $10: Analysis of Bullish Momentum and Interest in Real World Assets (RWA)
Date: 2023-09-20 Author: Dima Zakharov Categories: BUSINESS
Chainlink Aims for a Rebound to $10: Analysis of Bullish Momentum and Interest in Real World Assets (RWA).
The price of Chainlink (LINK) is gaining momentum
Over the past week, the price of the cryptocurrency Chainlink (LINK) has surged by an impressive 17%, approaching the $7 mark. This upward trend is a result of increased interest in the Real World Assets (RWA) segment, raising important questions about the future of this cryptocurrency.
Growth of the Chainlink ecosystem
It is important to note that the Chainlink ecosystem is actively attracting new users. According to Santiment data, on just one day, September 17th, 865 new wallet addresses were registered on the Chainlink network. This is a significant event, as the last time such a substantial increase in users was recorded was on August 16th.
Interest in Real World Assets
What attracts users and investors to Chainlink? One of the factors is the interest in the Real World Assets (RWA) segment. Several RWA projects have already integrated Chainlink's price feeds and oracle infrastructure to use off-chain data in their networks. This trend could push the LINK price to a new rally.
Whales are actively investing in LINK
It is also worth noting the activity of "whales" (large investors) in relation to Chainlink. According to data, from August 30th to September 19th, addresses with balances ranging from 100,000 to 1 million LINK tokens increased their holdings by 2 million LINK. Given the current price of LINK, this amounts to approximately $13.8 million.
Price Prediction for Chainlink
With the increasing interest in RWA and growing demand for Chainlink tools, there is a possibility of LINK's price returning to the $10 level. Data from the IntoTheBlock platform, which reflects the price distribution of current LINK holders' entry positions, also confirms this potential. However, the path to this target will not be easy, as bulls will need to overcome resistance from 62,480 addresses that purchased 76.52 million tokens at an average price of $8.54.
In the event of increased selling pressure, Chainlink may start to decline towards $5. Nevertheless, the 18,750 wallets that acquired 250 million coins at an average price of $6.50 will provide significant support and likely prevent further declines.
Chainlink continues to attract the attention of both new users and large investors. Interest in RWA and increased demand for Chainlink tools may create a favorable environment for LINK's price to rise to $10. However, as always, the cryptocurrency market remains volatile, and investors should exercise caution.
