- Chainlink on-chain metrics show dwindling exchange reserves and a likely reduction in selling pressure on LINK.
- LINK price likely faces resistance at $17.64 and $18.82, on its uptrend towards the $20 target.
- Chainlink price climbed over 6% on January 15, after rallying nearly 20% in the past week.
Chainlink price hit a local peak of $17.64 on December 28, for the first time since April 2022. LINK price is $15.65, at the time of writing. The altcoin noted a mini breakout over the weekend and the price rallied to a high of $15.86, for the first time in two weeks.
LINK supply on exchanges has declined, supporting a price recovery thesis for the altcoin.
Also read: Axie Infinity and Bitcoin Cash hold up despite high ratio of shorts
Chainlink on-chain metrics support LINK price rally
Chainlink’s supply on exchanges declined below 15% for the first time in four years, according to Santiment data. The number of wallet addresses with non-zero LINK balance is within 6% of its all-time high.
Chainlink on exchanges hits lowest level since 2020. Souce: Santiment
Chainlink’s supply on exchanges declined to 14.89% of LINK’s total supply, as seen in the Santiment chart below. A decline in exchange supply typically signals a decline in selling pressure, followed by an increase in LINK price.
Chainlink supply on exchanges. Source: Santiment
Chainlink faces one resistance on path to $20
According to IntoTheBlock data, on its path to $20, Chainlink faces resistance at $18.82. LINK price is currently in a support zone, between $15.35 and $18.82, where 53,510 wallet addresses accumulated 18.97 million LINK tokens.
LINK’s key resistance zone is between $18.82 and $26.88. The $20 target lies within this zone where 92,530 addresses bought 50.35 million LINK. This makes it a key zone to watch for LINK price. Once LINK breaks into this zone, a rally to $20 is more likely.
Global In/out of the Money. Source: IntoTheBlock
As seen in the LINK price chart below, LINK price could rally to the bearish imbalance zone between $19.54 and $20.01, once Chainlink breaks past resistance at $17.64, the 2023 peak for the altcoin.
LINK/USDT 1-day chart
A daily candlestick close below the 50-day Exponential Moving Average (EMA) at $14.47 could invalidate the bullish thesis for LINK.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.