- Chainlink’s LINK token has rallied 16% in the past week to over $20, reaching its highest price since January 2022 and becoming a top 10 cryptocurrency
- The price surge coincides with increasing network activity and adoption, such as integrations by Eigenpie, Paxos and Umami DAO, though large transfers to exchanges raise concerns
- Technical analysis shows an ascending parallel channel on the daily chart, signaling the potential for further upside as long as LINK remains within the channel boundaries
Chainlink‘s native token LINK showcased a 16% rally between Feb 9 and Feb 12 to trade at $20.85, a level not seen since January 2022. This has brought its market capitalization to $11.67 billion and overtakes Dogecoin (DOGE) to become the 10th largest cryptocurrency by market capitalization.
Surging Network Activity and Adoption
LINK’s price rally is accompanied by increasing network activity and a rise in trading volume. Notably, the price still remains within the confines of an ascending parallel channel, hinting at the potential for more upside.
Data from IntoTheBlock highlighted Chainlink network activity hitting a 22-month peak alongside an increase in active and new addresses. Data from Sentiment shows a surge in daily active addresses (DAA) which almost doubled from 2,801 on Jan 25 to more than 5,560 on Feb 12, marking a 97% increase.
On Feb 1, Eigenpie announced the integration of Chainlink CCIP across Arbitrum and Ethereum. Paxos also announced the adoption of Chainlink’s new PayPal USD price feed on Feb 7. The DeFi-focused Umami DAO also recently integrated Chainlink Data Streams on Arbitrum.
Large Transfers to Exchanges Raise Concerns
Data from blockchain analytics platform SpotOnChain shows that a whale transferred 245,000 LINK worth $49 million on Binance. The same whale has taken a total of 495,057 LINK worth $75 million off the Binance crypto exchange at an average of $15.13 per token between Jan 28 and Feb 7, 2024.
Although this wallet still holds 250,000 LINK valued at around $5 million, redistributing tokens and sending them to exchanges could signal an intent to sell at the current prices.
Bullish Technical Outlook
Since Jan 26, LINK price action has painted a series of higher highs and higher lows, leading to the formation of an ascending parallel channel on the daily chart. This bullish technical formation points to the continuation of the uptrend as long as the price remains within the confines of the channel.
Popular analyst Rekt Capital expects a potential retest of the support level at $19 before LINK resumes the uptrend.
