Key Takeaways:
- Chainlink bulls return after its interoperability blockchain solution goes live on Coinbase’s Base.
- But technically, the price jump is part of the prevailing rebound pattern.
- Traders can expect the rebound rally to continue in October.
YEREVAN (CoinChapter.com) — Chainlink (LINK) prices popped on Sep. 28, continuing its rally from the previous day as traders assessed the platform’s interoperability protocol launch on the Base blockchain.
Chainlink’s CCIP Now Live
On Sep. 27, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) went live on Base, a Coinbase-backed, Ethereum-secured layer-2 blockchain. As a result, Base developers can develop cross-chain applications that send messages, transfer tokens, and initiate actions across different blockchains.
Simply put, the Chainlink-Base partnership raises LINK’s potential to find more organic demand among developers. On-chain evidence proves such growth, with Chainlink’s cumulative volume and revenue surging recently.
However, LINK’s price rise in the past 24 hours took cues from additional catalysts, primarily the upside witnessed across the cryptocurrency market. Traders speculated about a growing crypto demand ahead of a potential US shutdown crisis.
More LINK Gains Ahead Or?
Technically, the LINK price has been stuck inside the $5.62-8.79 range since May 2023. And in Q4/2023, it will likely trade inside the range.
As of Sep. 28, Chainlink changed hands for $7.81 while eyeing an extended rebound rally toward $8.79, a resistance level that coincides with the 200-week exponential moving average (200-week EMA; the blue wave).
A breakout above this resistance could have the LINK price test $12.88 as the next upside target by October 2023.
Conversely, a pullback before or after testing the $8.79 resistance level risks pushing the LINK price to the $5.62 support level in October 2023.
Whales Accumulate During LINK Price Recovery
From an on-chain perspective, things look positive for LINK.
For instance, the ongoing LINK price rally precedes a shape rise in the token supply held by Chainlink’s topmost whales.
The data appears as the LINK supply held by entities with a 10 million-100 million token balance rises modestly, absorbing the reduction in the supply of the 1 million-10 million LINK balance cohort.
Meanwhile, the period of LINK price bounce coincides with the increasing supply in the 100,000-1 million token balance cohort.
