Chainlink: Here’s What Could Lead LINK’s Price to $10
Historical data from on-chain transactions suggests that the movements of LINK's price are closely related to development activity.
It is possible that the recent boom in DeFi could cause LINK’s price to recover in the coming weeks.
Amid the US banking industry’s upheaval, LINK has gained momentum as investors turn to decentralized finance protocols.
Chainlink is a blockchain-based decentralized oracle network (DON) that provides real-world data to DeFi protocols built on smart contracts. A surge in demand for DeFi products following major collapses in the traditional financial sector has driven the recent rally in LINK’s price.
Chainlink’s auxiliary services are in high demand as an increasing number of investors shift their focus towards decentralized finance products and services that rely on DeFi protocols.
The recent rise in development activity on the Chainlink blockchain network highlights this, as the demand from various DeFi smart contract platforms has increased.
According to Santiment’s on-chain data, developer activity on the Chainlink network has risen by more than 50% since early February. This persistent increase is a bullish sign that investors may take as a positive indication of the long-term price performance of LINK.
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Furthermore, a decrease in the availability of LINK tokens on exchanges is a significant indicator on the blockchain that supports a positive outlook. This reduction in supply limits the number of tokens accessible for immediate trading purposes.
The resulting scarcity, caused by holders transferring tokens from exchanges, can potentially increase the value of LINK.
Should Chainlink developers maintain their current level of progress and token holders continue to move their tokens off exchanges, there is a high likelihood of a sustained upward trend in the price of LINK for crypto investors to anticipate.
Chainlink could break above the $7 mark, where sell orders of about 66 million tokens are currently placed, and reach $10 as a viable target. However, a slip below the 277 million buy wall at $6.22 could invalidate the bullish outlook.
At the time of writing LINK is trading at $7.26 after a 4% drop on the weekly chart.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
