Key Takeaways:
- Chainlink token LINK has traded within a consolidation channel for over a year.
- Technicals suggest another 20% jump ahead.
- On-chain metrics support the bullish target.
YEREVAN (CoinChapter.com) – Chainlink (LINK) jumped 4% to $6.7 on Sep 19, while its trading volumes soared by nearly 40%. The move came as a continuation of the 10% advance on Sep 18, while the trading volumes cooled off from a 285% increase. But the token could pump another 20% by 2024.
LINK could rally 20%
Chainlink has remained range-bound within a consolidation channel since May 2022. The formation features two parallel trendlines that prevent sharp moves in either direction. If the setup remains relevant, LINK price could gain another 20% and retest the channel’s upper trendline at $8.2 by 2024.
As of Sep 19, the token broke above the channel’s mid-range and hit the 200-day exponential moving average (200-day EMA; blue wave). If a correction follows in the coming hours, the likely short-term target will stand at the $6.4 line.
On-chain metrics support the bullish scenario.
Meanwhile, according to on-chain data provider Santiment, Chainlink’s development activity has been rising since 2020 (blue wave in the chart below), adding to the bullish expectations.
It’s no secret that prices have been down. But looking at projects that continue to stay busy and work to improve and innovate consistently is never a bad investment strategy. And it is clear that all 10 of these projects have continued to push higher with their work to make their products better.
read the Santiment report.
Moreover, the supply held by top addresses jumped to 31%, which speaks of growing demand.
Conversely, the LINK supply on exchanges shot up from 15% to 17% on Sep 14 and has stayed there since, suggesting a looming selloff.
However, every sharp spike in LINK supply influx since the record high of 18.8% in August 2022 was followed by a gradual decrease and did not sharply derail the Chainlink token price.
