Chainlink’s LINK token erupted to its highest level in nearly two years this week thanks to increasing on-chain activity from dormant wallet holders. The oracle network leader saw intense price gains as longtime holders resumed transacting with their cached LINK piles.
TLDR
- Chainlink’s LINK token surged to a 22-month high around $18 due to increased circulation from previously dormant wallets
- Santiment data shows a spike in “Age Consumed” metric as coins locked for long periods moved back into active use
- The influx of dormant LINK re-entering networks likely fueled the recent price rally
- Chainlink continues cementing itself as a leader in blockchain oracle services and cross-chain interoperability
- Some analysts forecast LINK continuing its ascent to levels between $25 to $30 based on bullish technical indicators
According to blockchain intelligence firm Santiment, Chainlink recently registered its largest ever spike for dormant token movements coming back online. By analyzing “Age Consumed,” which multiplies transferred token amount by the length coins were idle, Santiment spotted a monumental influx of previously inactive LINK shifting back into market circulation.
???????? #Chainlink has jumped ahead of the #altcoin pack after some previously dormant wallets created the highest Age Consumed spike (5.38B, calculated by multiplying coins moved by the amount of days those coins had been dormant). This influx of $LINK back into the
(Cont) ???? pic.twitter.com/eHVpeJz2HW
— Santiment (@santimentfeed) February 1, 2024
This tidal shift of sidelined supply reactivating propelled LINK prices to breach critical resistance around the $17 level. By early Friday trading, LINK surged to an intraday peak at $18.13 — its loftiest value since April 2021 when the token briefly traded above $28.
Santiment suggests the huge dormant coin movements, whether from investors taking profits or rotating into different holdings, produced selling pressure. Such liquidations often generate fear, uncertainty, and doubt, especially from those worried about major holder offloading crashing prices.
Yet paradoxically, this chain reaction often entices traders to buy the dips. That speculative response appears in play for LINK, with buyers overpowering any excess supply hits from newly reactivated whales.
Beyond influential market whales reanimating, Chainlink retains its blockchain foothold by providing invaluable cross-chain and oracle services as adoption accelerates across enterprises and traditional institutions. The network’s Cross-Chain Interoperability Protocol (CCIP) also positions LINK to benefit from asset tokenization growth.
With fundamentals firmly backing its value, LINK receives frequent praise as an altcoin outlier prepared to thrive regardless of fickle broader market sentiment. The technical chart tells a similarly bullish tale at the moment.
Outpacing nearly all major crypto assets in 2024, LINK currently trades around $18 – up over 30% on the week. Some seasoned analysts forecast the powerful trend carrying the asset up to resistance near $20 before reaching between $25 to $30 should favorable momentum sustain.
The higher low is confirmed on $LINK.
If Ethereum picks up pace, we’ll see a massive breakout on Chainlink in the coming period.
We’ll likely run to $25-30 in the coming period. pic.twitter.com/D514NHv1mK
— Michaël van de Poppe (@CryptoMichNL) February 1, 2024
As legacy giants like banks and stock exchanges turn to platforms like Chainlink to unlock web3 efficiency gains, LINK appears a prescient investment bet on blockchain’s creeping inevitability. Of course, sustaining its epic price run depends greatly on Bitcoin charting the course for crypto over the long haul.
