The recent surge in unique $LINK address interactions over the past 2 months has been indicative of increasing network utility, and this is starting to have a positive impact on the price of Chainlink (LINK). The amount of active addresses interacting with the network has bounced back to levels last seen in early 2021, suggesting that more people are beginning to use the network every day.
The rise in utility is an important factor for investors as it signals potential growth and profit down the line, especially when combined with increased demand for LINK. This explains why, since January 1st, 2023, we’ve seen continuous gains in LINK prices—from $5.592 to almost the current trading price of $6.29 in the last week.
Chainlink Current Price Analysis
Chainlink price analysis for today reveals LINK is trading in a firm bullish position, as the coin continues to move above $6.0.Chainlink is facing resistance near the $.50 mark, which could cause some downward price action in the near future if it fails to break through this level.
At the time of writing, LINK is trading at $6.29 with a market cap of almost $3,191,911,995. LINK’s trading volume has increased by 18.51% while the price is up by 2.57% in the last 24 hours. Looking ahead, LINK is likely to break above the 12-day EMA, which would further confirm the bullish trend.
The technical analysis for the LINK/USD on a 4-hour chart shows the pair is starting to form a descending triangle pattern. A break of this pattern may result in LINK resuming its uptrend, allowing it to test the resistance at $7.50. The Relative Strength Index (RSI) for LINK/USD is currently at 62.99 and suggests that the coin may face some minor resistance levels in the near future before any major upwards surge. The Stochastic RSI is at 83.08 and suggests that LINK is overbought, which could lead to a slight pullback before it can continue its uptrend trend.
Meanwhile, the Moving Average Divergence Convergence is moving above the red signal line, confirming that LINK’s bullish momentum is still strong while the market volatility remains relatively high at the moment. The Bollinger bands are stretching out, which signals that LINK is likely to experience some more sideways action in the near future.
Overall, it appears that Chainlink (LINK) could be poised for further upside movement if it manages to break above the resistance at $7.50. The recent increase in unique address interactions combined with positive technical indicators suggests that bullish sentiment may remain strong in the near future. The key support levels for LINK/USD are at $5.50 and $4.80, while the key resistance levels are at $7.50 and $8.00.
