Chainlink (LINK) has garnered significant attention in recent weeks, thanks to its positive price movement and promising on-chain developments. Crypto analyst Ali Martinez recently shared some insights on the token’s potential price action, particularly highlighting the establishment of a robust support zone for LINK.
According to Martinez, a strong support zone has formed for Chainlink between $6.63 and $6.88. This conclusion is based on data from analytics firm IntoTheBlock, which reveals that over 29,000 addresses purchased more than 295 million LINK within this price range. As long as the altcoin continues to trade above this zone, investors are likely to maintain a bullish sentiment.
Furthermore, Soon-chain data indicates that there are no significant resistance levels ahead for Chainlink. This further strengthens the bullish outlook for the token, particularly for those LINK whales who have already recognized the $6.63-6.88 zone as a reliable price support. In the past 14 days alone, LINK whales accumulated approximately 13 million LINK, totaling around $91 million.
While the accumulation of LINK by whales and the presence of a strong support zone suggest a potentially bullish market, Ali Martinez advises traders to exercise patience when anticipating a market breakout. It is worth noting that the analyst draws attention to the declining network activity on the Chainlink network over the past three weeks.
During this period, the number of large LINK transactions has decreased from 527 to 118, as reported by IntoTheBlock. Therefore, a significant boost in this metric could potentially precede a market breakout. As of now, Chainlink is trading at $7.44, experiencing a slight 1.36% decline in the last day, according to CoinMarketCap data. However, LINK has witnessed a 3.66% and 17.67% increase in the last seven and thirty days, respectively.
In addition to Ali Martinez’s market analysis, there have been other positive developments surrounding Chainlink. Santiment, a market intelligence firm, reported on August 11 that LINK had experienced its highest level of dormant coin movements in the past six weeks. This suggests a decline in LINK’s mean dollar invested age curve, indicating a decrease in the token’s time held in wallets. This trend usually precedes a rise in market capitalization.
Furthermore, Chainlink has witnessed a steady rise in development activity over the past few months. According to Santiment data, development activity on the Chainlink network increased from 1579.12 on May 31 to 1706.48 on August 3. This upward trend in development activity is another positive indicator for the future prospects of Chainlink.
Chainlink’s recent price action and market developments have generated significant interest in the crypto community. The establishment of a strong support zone, coupled with positive on-chain indicators, suggests a bullish outlook for the token. However, traders should exercise patience when anticipating a market breakout, considering the declining network activity in recent weeks. Moreover, the increase in dormant coin movements and development activity further contribute to the positive sentiment surrounding Chainlink. As always, investors should conduct thorough research and analysis before making any investment decisions involving Chainlink or any other cryptocurrency.