Benzinga - Cryptocurrency analyst Ali Martinez noted further gains ahead for Chainlink (CRYPTO: LINK), highlighting a significant resistance level at $20.
What Happened: In the past 24 hours, Chainlink surged 12.5%, bringing its seven-day gain to 26.3% and making it one of the leading altcoin rallies. Analyst Martinez points out a significant resistance level at $20:
#Chainlink appears primed for further gains! On-chain analytics reveal a significant resistance level at $20, where 5,330 addresses collectively hold approximately 8.59 million $LINK. pic.twitter.com/cO1or7FRCd— Ali (@ali_charts) February 2, 2024
Data from IntoTheBlock reveals $1.2 billion in transactions over $100,000 in the past seven days. Around 67% of holders are currently in profit, and whales hold 71% of the supply. On-chain signals largely indicate a bullish trend for the token.
Heavily followed cryptocurrency analyst Michaël van de Poppe indicated that Chainlink is facing crucial resistance as the accumulation period of over two years comes to an end.
#Chainlink facing crucial resistance before an accumulation period of more than 2 years is going to end. pic.twitter.com/bEc9Ry5o8f— Michaël van de Poppe (@CryptoMichNL) February 2, 2024
Also Read: Altcoins Bleeding In Correction Phase: 'This Is Nothing More Than A Buy The Dip Opportunity,' Says Analyst
Why It Matters: Earlier this week, Chainlink stated on X that it is the only platform providing data, compute, and cross-chain capabilities necessary for widespread blockchain adoption and tokenized real-world assets. ChainlinkGod.eth, a community ambassador, described Chainlink as entirely blockchain-agnostic.
Sentiment data today showed Chainlink surging ahead in altcoins due to dormant wallets creating the highest "Age Consumed" spike of 5.38 billion coins (calculated by multiplying coins moved by dormancy duration). This movement pushed prices higher. The network also saw minor wallet liquidations, considered a sign of FUD, further contributing to price increases.
CoinGlass data on Chainlink's derivatives analysis showed Open Interest surging 32.8%, accompanied by a 132.8% increase in trading volume. These metrics indicate rising interest in the network from both traders and investors.
What's Next: Chainlink is widely tipped to benefit if the tokenization of financial assets accelerates.
Read Next: From Stagnant To Sizzling: Chainlink Heats Up On USDC Transfer Deal
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