While the Bitcoin price consolidates around $34,200 levels, altcoins like Solana (SOL), Cardano (ADA), and Chainlink (LINK) continue with their bullish rally ahead.
The Chainlink price is up by a staggering 6.6% over the last 24 hours moving all the way closer to $12. Over the last 10 days itself, the LINK price has gained an impressive ~45% driven by strong investor activity.
Will Chainlink Price Rally to $15?
Popular crypto analyst Ali Martinez noted that Chainlink has successfully breached an ascending triangle pattern on its hourly chart. This bullish formation suggests a potential 14% price increase, possibly propelling $LINK towards the $13 mark.
Today’s LINK price rally to $11.50 has been backed by a 90% surge in the 24-hour trading volume. However, investors making any fresh entry at this point should remain cautious as on-chain data shows drop in trading activity.
On-chain Data suggests Caution
The CryptoQuant chart below illustrates Chainlink’s impressive performance with a 3-month high of 8,086 Active Addresses on October 23. In just 24 hours after this milestone, LINK’s price surged to $11.50, a level not seen since 2022.
However, in the week following October 23, LINK’s Active Addresses experienced a significant decline, dropping to 3,233 by October 29. This marks a remarkable 60% reduction in daily network engagement in just one week.
The Daily Active Addresses metric reflects the level of participation by existing users in a blockchain network. A decrease in Active Addresses is often seen as a bearish sign, suggesting reduced demand for the project’s services.
As shown in the chart above, Chainlink’s network activity has witnessed a substantial 60% decrease over the past week.
Similarly, Santiment reports a significant reduction in the creation of new addresses on the Chainlink network. The chart below reveals that Chainlink Network Growth reached its highest point in 110 days, reaching 2,465 on October 23.
However, much like the trend observed in Active Addresses, Network Growth figures have also seen a sharp decline, plummeting by 60% to 1,008 new addresses as of October 29.
Network Growth is a metric that measures the rate at which new users join a blockchain ecosystem by tracking the daily creation of new wallets. Typically, a decrease in Network Growth can have a negative impact on the prices of the native token of the ecosystem.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.