Chainlink (LINK) defies market turmoil. According to analyst Kelvin Munene, the altcoin has enough momentum to continue its rise. Additionally, the analyst says that bullish momentum is fueled by strong on-chain activity.
Altcoin impresses with its performance in the market
Chainlink (LINK) has demonstrated a resilient performance despite the recent turmoil in the crypto market. That’s why it managed to attract the attention of the market. As you follow on Kriptokoin.com, LINK increased by over 10% last week. In this move, the altcoin broke the $7.00 barrier. This move was completed with a market capitalization increase of $4 billion.
This strong uptrend potentially sets the stage for LINK to surpass the monthly high mark of $7.13, which would mark a full recovery from its losses in mid-August.
LINK’s on-chain activity reached a 2-month high
Additionally, Chainlink’s on-chain activity reached a two-month high. Data provider Santiment highlighted the platform’s resilience amid broader market conditions. There was a significant increase in unique addresses interacting with the LINK network, totaling 3,964. This underlines that participation in the network is increasing. It is also a testament to Chainlink’s growing appeal in the altcoin market.
Additionally, more than 5 million LINK have decreased from exchange wallets in the past week. This indicates that selling pressure has decreased and primarily bull market sentiment. This move, combined with the increasing LINK token accumulation by notable investors, underscores the positive market outlook for the altcoin.
Chainlink’s Arbitrum integration powers momentum
Additionally, Chainlink’s integration with Ethereum’s layer-2 scaling protocol Arbitrum marks a very significant development. The integration aims to facilitate the creation of decentralized applications that can run seamlessly across various blockchains.
The launch of the Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One’s mainnet is a milestone that promises to unlock a variety of applications, from token transfers between blockchains to innovative Blockchain gaming developments.
Bullish momentum prevails for the altcoin
However, in order for LINK to continue its current rise, it must find support at $ 7.4. If it fails to sustain the momentum, it is possible that LINK could retreat to $6.0, a key support zone that marks the convergence point of the three exponential averages. Meanwhile, LINK’s trading volume in the last 24 hours reached 171.50 million dollars. This shows that there is continued interest and buying pressure in the crypto community. However, the altcoin is still struggling with a decline of 8.10% in the last six months. Therefore, its current valuation requires investors to be careful.
LINK chart. Source: TradingViewAs a result, technical indicators remain central to LINK’s forward trajectory. The upcoming ‘golden cross’ formation, that is, the 50-day moving average breaking above the 200-day moving average, is considered a potential bullish catalyst. This move is consistent with LINK breaking out of the descending triangle formation. Therefore, if confirmed by consistent buying volume, it could be crucial for a sustainable upward move. Recent developments and solid on-chain data present a promising outlook for LINK.
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