Chainlink’s LINK Token Surges to $16, Becomes 11th Largest Cryptocurrency

Chainlink Surges as Broader Crypto Market Remains Stagnant.

Chainlink (LINK) is bouncing back towards its highest level in several months. What is causing this upward movement?

🌐 Source

Chainlink’s LINK token experienced a 7% surge on January 17th, reaching a price of $16. This level was last seen on December 29, 2023, and solidified LINK’s position as the 11th largest cryptocurrency by market capitalization, excluding stablecoins.

📈 LINK outperforms BTC, ETH, and SOL

It’s worth noting that while LINK gained value, Bitcoin’s price was down 2% during the same period. Additionally, LINK’s performance stood out compared to Ether’s 0.65% decrease and SOL’s 5.5% increase.

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💡 Can LINK Sustain its Current Rally?

Chainlink’s recent rally can be attributed to various factors. The project’s partnerships and collaborations have played a significant role in boosting LINK’s upside. Specifically, partnerships with SingularityDAO, Swift, and the integration of Chainlink CCIP by Redacted have supported the token’s presence in real-world asset (RWA) tokenization and the Web3 space.

🤝 Chainlink Partnerships and Collaborations

Chainlink Labs’ partnerships with SingularityDAO, a decentralized platform, and Swift have contributed to LINK’s bullishness in the RWA sector. The recent integration of Chainlink CCIP by Redacted for cross-chain transfers of Pirex ETH (pxETH) further demonstrates Chainlink’s growing influence in the Web3 space, allowing for cross-chain interoperability.

🔄 LINK’s Decreasing Supply on Exchanges

Another factor contributing to Chainlink’s recent upside is the decrease in LINK’s supply on exchanges. The supply has hit a four-year low, dropping below 15%. This decrease suggests that traders prefer holding LINK tokens instead of selling them for other assets. As long as demand remains high, the potential for LINK to continue its current run increases.

🔍 Link Supply Across Exchanges vs. Total Holders

According to data from Santiment, LINK’s supply across all crypto exchanges has shown a downward trend, coinciding with a 6% increase in the number of wallets holding more than 0 LINK. This suggests that smallholders of Chainlink believe in the token’s potential for further value appreciation.

📈 LINK Price Aims for a V-Shaped Recovery

LINK’s price action since December 27, 2023, has formed a V-shaped recovery chart pattern on the daily chart. A V-shaped recovery is a bullish pattern characterized by a sharp price increase after a steep decline, completing when the price reaches the resistance at the top of the V formation. Currently, LINK is approaching the pattern’s resistance line at $17.

✨ Bullish Momentum for LINK

The rising moving averages and the positive moving average convergence divergence (MACD) indicator indicate the building bullish momentum for LINK’s price. The bullish cross sent by the MACD on January 14, when the 12-day exponential moving average (EMA) crossed above the 26-day EMA, suggests that market conditions continue to favor the upside for LINK.

🔮 Future Outlook and Investment Recommendations

With the recent surge in the LINK token and its solidification as the 11th largest cryptocurrency, it is essential to consider the potential future trends and investment opportunities in the blockchain market. Based on the partnerships and collaborations, decreasing supply on exchanges, and the V-shaped recovery pattern, LINK shows promise for further growth. However, as with any investment, it is crucial to conduct thorough research and make well-informed decisions.

🔍 Additional Q&A Content

Q: What other partnerships has Chainlink formed? A: In addition to SingularityDAO and Swift, Chainlink has formed partnerships with various companies and projects in the crypto and blockchain space. Some notable ones include Google Cloud, Hedera Hashgraph, and Matic Network.

Q: How does Chainlink’s oracle system work? A: Chainlink’s oracle system acts as a bridge between blockchain smart contracts and external data sources. It enables smart contracts to securely access real-world data, providing them with the necessary information to execute their functionalities automatically.

Q: What advantages does Chainlink offer compared to other oracle solutions? A: Chainlink offers decentralized oracle solutions, ensuring data integrity, security, and reliability. It leverages a network of independent oracles and data aggregators, providing a tamper-proof and accurate source of data for smart contracts.

🔗 References

1. Chainlink Partners with SingularityDAO and Swift
2. Chainlink CCIP Integration by Redacted
3. Cross-Chain Interoperability
4. Chainlink’s Rising Influence in Web3
5. Santiment’s Data on Chainlink’s Supply on Exchanges
6. Three Reasons Why Chainlink Price Can Rally Another 20%

🙌 Share your thoughts on Chainlink’s recent surge and its future potential! #Chainlink #Cryptocurrency

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