- LINK hits 17-month high after consolidation channel breakout.
- Bitcoin uptrend and increased development activity behind the Chainlink token rally.
- LINK whales and shrimp accumulated, raising network activity.
YEREVAN (CoinChapter.com) — Chainlink (LINK) rallied 50% in three days to reach $10.4 on Oct. 23, its highest level in seventeen months. The uptrend helped LINK’s price break out of a prevailing descending channel, signaling a strong bullish reversal.
Chainlink (LINK) Price Escapes Bearish Channel
Notably, LINK’s descending channel capped its ability to log sharp breakouts in either direction since May 2022.
But the October rally has painted a different picture. LINK is now among the top weekly gainers, surpassing Bitcoin (BTC) and Ethereum (ETH).
LINK Confirms Golden Cross
Chainlink painted a golden cross on the daily chart between the 100-day exponential moving average (100-day EMA; the green wave) and the 200-day EMA (the blue wave). Generally, a golden cross occurs when a short-term EMA crosses above a long-term EMA and signifies a bullish phase ahead.
A similar 100-200 EMA crossover occurred in December 2021, preceding a 50%-plus price rally. If the fractal repeats, the LINK price may head for another bull run.
Suppose it happens. Then, the Chainlink token could hit the support-turned-resistance level at $10.90. Another breakout could have LINK eye its pre-Terra-implosion levels above the $11-12 range.
Why is Chainlink Price Rallying?
The LINK rally appeared part of a broader crypto market pump led by Bitcoin.
Additionally, according to crypto data provider Santiment, Chainlink development activity has been rising since mid-October. Generally, high development activity underscores an organic demand for LINK tokens, which may influence spot traders to long the cryptocurrency.
The Chainlink ecosystem has also grown since, adding several new partners to the fold. The latest announcement came on Oct. 20, as automated liquidity manager ACrypros DAO integrated Chainlink Automation and Price Feeds on Arbitrum, BNB Chain, Optimism, and Polygon.
LINK Holders Count Up
The number of LINK addresses has been growing from its late 2022 low (the red wave), underscoring a rise in demand. Meanwhile, the Chainlink token supply across all exchanges has dropped to its lowest level since March 2021 (the yellow wave), indicating holding interest.
The number of 7-day and 30-day active LINK addresses has also been rising since early September, indicating healthy network growth.
Additionally, the whale accumulation heightened in mid-October, as large LINK addresses added 5.12 million tokens (worth $38.5 million at the time) on Oct 10-17 alone.
Generally, whale interest could have a significant impact on a coin’s price, as whales tend to stir the markets in a particular direction. They also influence the smaller investors’ outlook, as retail market participants assume whales have more reach and precise information on a given cryptocurrency.