Chainlink (LINK) Price Can Rally To $20 As Exchange Supply At 4-Year Low

January 16, 2024

Senior Journalist

Expertise : Cryptocurrency, Blockchain, Macro Finance

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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Chainlink Price Plunges 5%: How Long Will the Bearish Trend Continue?

Oracle service provider Chainlink (LINK) has been on investors’ radar recently with more than 8% gains over the last week. On Monday, January 15, the LINK price surged all the way to $16. However, Chainlink price is down more than 3% trading at $15.12 and a market cap of $8.58 billion at the of press time writing.

Chainlink Exchange Supply Drops to 4-Year Low

In a recent analysis by on-chain data provider Santiment, Chainlink (LINK) experienced a noteworthy uptick over the weekend, reaching $15.82, marking its highest point in the past two weeks.

The data further reveals a significant development as the supply of LINK on exchanges has dropped below 15%, a level not witnessed in approximately four years. Additionally, the number of wallets holding more than zero LINK coins is now approaching 6% of its all-time high, indicating heightened activity and potential market dynamics for Chainlink.

Furthermore, according to insights from crypto analyst Ali Martinez, Chainlink (LINK) has established a robust demand zone within the price range of $14.8 and $15.2. Notably, this zone attracted the interest of 17,650 addresses, leading to the acquisition of a substantial 85.12 million LINK tokens.

With the absence of significant resistance levels in the immediate future, the analysis suggests that LINK could be poised for a potential upward movement, with a target projection towards the $20 mark.

The LINK Price Rally to Continue?

In the past month, Chainlink (LINK) has observed a notable uptick, marking a 4% increase amid the ongoing market dynamics characterized by the interplay between bullish and bearish forces. The bulls currently seem to be gaining dominance in this financial tug-of-war.

Over the recent weekend, LINK experienced a minor breakout, reaching a two-week high at $15.86. Presently, the cryptocurrency is trading above the $15 support level, fostering optimism among analysts for forthcoming bullish trends in LINK’s price.

The current state of LINK’s price is at a pivotal juncture, where a breakthrough beyond $17 could propel it towards the $20 threshold, potentially reaching new highs. Conversely, a decline might lead to a loss of crucial support at $13.

A dip below this level, especially touching the 100-day Simple Moving Average (SMA) at $13.19, would negate the bullish outlook, potentially triggering a more significant downturn. These scenarios highlight the inherent volatility and unpredictability of the cryptocurrency market.