The rally is accompanied by an increase in network activity and trading volume

LINK token exchange rate reaches an annual high of $20

14.02.2024 - 06:55

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3 min

What’s new? The exchange rate of the native token of the Chainlink (LINK) decentralized oracle network showed a 16% increase between February 9 and February 12. The asset traded at $20,85 for the first time since January 2022. This brought LINK’s market capitalization to $11,67 billion, and it temporarily overtook the Dogecoin (DOGE) meme token to become the 10th largest cryptocurrency by this measure. The LINK price rally has been accompanied by an increase in network activity and trading volume. Notably, the price still remains within an ascending parallel channel, which hints at the potential for further growth, according to analysts at Cointelegraph.

Material by Cointelegraph

What happened? Activity on the Chainlink network has reached a 22-month peak, along with an increase in the number of active and new addresses, according to the IntoTheBlock platform. For example, the number of active addresses increased from 2800 on January 25 to 3210 on February 10. Similar growth was seen in the number of new Chainlink addresses, which increased from 808 to 1020 over the same period.

Data from analytics platform Santiment shows a sharp increase in the number of daily active addresses (DAAs), which nearly doubled from 2801 on January 25 to more than 5560 on February 12, marking a 97% increase.

Technical indicators and online data may suggest that the LINK price is overwhelmed and is due for a pullback. Data from analytics platform SpotOnChain shows that a large holder transferred 245 000 LINK worth $4,9 million to the Binance exchange. The same address withdrew a total of 495 057 LINK worth $7,5 million from Binance at an average price of $15,13 per token between January 28 and February 7.

This wallet still holds 250 000 LINK worth about $5 million. Cointelegraph analysts believe that the redistribution of tokens and sending them to exchanges may indicate an intention to sell assets at current prices.

Since January 26, LINK’s price dynamics have shown a series of high highs and lows, which led to the formation of an ascending parallel channel on the token’s daily price chart.

This bullish technical formation indicates the continuation of the uptrend as long as the price remains within the channel. This predicts price growth to the upper boundary of the channel, which is currently at $21. A close above this mark could take the price to $25.

As of February 14, 07:20 UTC, the LINK token price corrected to $19,99, down by 0,93% for the day, while adding 7,9% for the week (data from the CoinGecko aggregator).

Analyst Ali Martinez allowed the possibility of the Chainlink token rate to rise by 41%

Analyst Ali Martinez allowed the possibility of the Chainlink token rate to rise by 41%

According to the expert, the asset is approaching a key resistance area

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In November, Yucheng Technology, part of Hong Kong’s largest conglomerate Chow Tai Fook, began working with Chainlink’s team to launch tokenized funds.

That same month, shares of the LINK-based Grayscale investment company’s trust were trading at a 200% premium to the coin itself, indicating a desire of institutions to gain access to it in the only possible way, according to media reports.

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