Chainlink’s on-chain metrics are presenting a bullish case for its native token, LINK, suggesting a potential for extended gains. This optimism is fueled by a notable decrease in exchange supply and an increasing interest among market participants.
Recently, Chainlink’s price saw a significant increase of 15.26% week-on-week, reaching $16 (ZAR 304.8) early on January 17. Over the past month, LINK holders have witnessed nearly a 13% gain, marking a consistent upward trend. Data from IntoTheBlock indicates that LINK is currently situated in a strong support zone, ranging between $15.56 (ZAR 296.42) and $18.78 (ZAR 357.76). Within this zone, about 48,000 LINK addresses have accumulated 16.84 million tokens. With the current price levels, over 92% of LINK wallet addresses are in a profitable state.
However, LINK faces a resistance barrier at $18.78. Breaking through this resistance could propel LINK’s price to a notable $26.94 (ZAR 513.21). Adding to the optimistic outlook is Chainlink’s social dominance metric, which tracks the token’s relevance among market participants. Recently, LINK’s social dominance reached a near 18-month high at 2.164%, a level last seen in July 2022. This peak in social dominance underlines the growing interest and potential for further price gains.
Moreover, the supply of LINK on exchanges has decreased to 14.85%, down from its August 2022 peak of 18.82%. A decline in exchange supply generally lessens the selling pressure on an asset, thereby supporting its price growth.
For South African investors, these developments in Chainlink’s on-chain metrics provide a compelling investment narrative. The combination of reduced supply on exchanges, increased profitability among holders, and heightened social interest in LINK paints a bullish picture for its future price trajectory. This scenario highlights the dynamic and data-driven nature of cryptocurrency markets, offering insightful investment opportunities for those keen on the evolving digital asset landscape
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