Chainlink’s native token (LINK) experienced a significant increase of 16% from February 9th to February 12th, reaching a price of $20.85. This surge in price has led to a market capitalization of $11.67 billion, surpassing Dogecoin (DOGE) and securing its position as the 10th largest cryptocurrency by market capitalization.
This rally in LINK’s price is accompanied by a rise in network activity and trading volume. Interestingly, the price is still within the boundaries of an ascending parallel channel, suggesting the potential for further upward movement.
Data from IntoTheBlock reveals that Chainlink’s network activity has reached a 22-month high, with an increase in active addresses and new addresses. The number of active addresses has risen from approximately 2,800 on January 25th to around 3,210 on February 10th. Similarly, the number of new Chainlink addresses has increased from 808 to 1,020 during the same period.
Santiment’s data also confirms a surge in daily active addresses, which almost doubled from 2,801 on January 25th to over 5,560 on February 12th, indicating a 97% increase.
In recent news, Eigenpie announced the integration of Chainlink CCIP across Arbitrum and Ethereum on February 1st. Additionally, Paxos adopted Chainlink’s new PayPal USD price feed on February 7th, and the DeFi-focused Umami DAO integrated Chainlink Data Streams on Arbitrum.
However, there are indications that the LINK price may be overextended and due for a pullback. Data from SpotOnChain shows that a whale transferred 245,000 LINK worth $4.9 million on Binance. This same whale has withdrawn a total of 495,057 LINK worth $7.5 million from the Binance exchange between January 28th and February 7th.
Although the whale still holds 250,000 LINK valued at approximately $5 million, the redistribution of tokens and their transfer to exchanges could suggest an intention to sell at the current prices.
On the other hand, the ascending channel in LINK’s price may attract bullish technical traders. Since January 26th, the price has consistently formed higher highs and higher lows, leading to the formation of an ascending parallel channel on the daily chart.
This bullish technical formation indicates that the uptrend may continue as long as the price remains within the boundaries of the channel. A potential increase in price towards the upper boundary of the channel, currently at $21, is projected. A decisive close above this level could push the price to $25.
Analyst Rekt Capital suggests that there may be a potential retest of the support level at $19 before LINK resumes its uptrend.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.