The on-chain indicators of Chainlink lend credence to the bullish thesis on the price of LINK. With the token of the Web3 services platform riding the bullish tide of reducing exchange supply and gaining importance among market participants, it is expected that the token will continue to extend its gains.
Chainlink Soars as Metrics Signal Continued Growth
When compared to the previous week, the price of Chainlink grew by 15.26%, reaching $16 early on January 17. Holders of LINK had a month-on-month increase of over 13% as the altcoin continued its upward trajectory. The on-chain data provided by IntoTheBlock indicates that LINK is now in a support zone, which is determined to be between $15.56 and $18.78. 48,000 LINK addresses within this zone have bought a total of 16.84 million tokens.
The current price indicates that more than 92 percent of wallet addresses that own LINK are profitable. The price of LINK is encountering opposition at $18.78. In the event that this barrier is overcome, LINK will eventually reach $26.94.
The social dominance of Chainlink, which is a parameter that is used to track the relevance of LINK among market participants, reached its highest point over eighteen months ago. In July 2022, LINK’s level of social dominance had increased to 2.164%. This lends credence to the positive argument about the price rises of LINK.
As opposed to the peak of 18.82% that occurred in August 2022, the supply of LINK on exchanges has decreased to 14.85%. A decrease in the supply of exchange often alleviates the selling pressure that is placed on an asset, which in turn promotes the asset’s price rise.