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Chainlink's 1.15% Price Surge to $6.14: Key Takeaways for September 15, 2023

Albert Morgan

— 4 min read

Chainlink's LINK token saw a moderate 1.15% price increase over the past 24 hours to $6.14, according to the latest market data. While not a huge single day gain, this continues an upward trend for LINK over the past month. After bottoming out at $5.32 just two weeks ago, LINK has posted consistent daily gains to return to the $6 level for the first time since mid-August.

What's driving this renewed interest in LINK? And what do the other key metrics tell us about where Chainlink could be headed next? Below we'll analyze the critical data points and emerging trends to better understand LINK's resurgence.

Surging Trading Volume Reflects Rising Buying Pressure

Over the past 24 hours, LINK trading volume surged to over $105 million. That's nearly double the daily average volume during LINK's stagnant trading period last month. This spike in volume shows traders are once again actively accumulating LINK tokens. High volume points to strong markent interest and buying demand.

In particular, LINK saw a huge spike in trading activity on leading US exchange Coinbase, where volume jumped to $38 million. That was the highest daily volume for LINK on Coinbase since May. This surge in volume clearly demonstrates renewed trader interest in Link.

Looking at the longer term price chart, LINK had been stuck trading sideways between $5.50 and $6 for over a month before this recent breakout. Heavy overhead resistance around $6 had contained the price throughout August.

This consolidation allowed LINK to establish a solid base of support while shaking out weak hands. The break above $6 signals a bullish shift in market structure and sentiment. With this resistance now flipped into support, LINK appears poised to make a run higher.

The key will be for LINK bulls to maintain this price level and confirm $6 as the new floor. As long as LINK holds above $6, the path of least resistance is to the upside.

Short Term Momentum Turns Positive

Zooming into the hourly chart, we can see LINK staging a positive momentum shift over the past week. After an initial surge from $5.32 to $5.92, LINK consolidated between $5.80 and $6.00 before finally breaking higher.

The hourly Relative Strength Index (RSI) indicator also shows a clear uptrend, with RSI moving from oversold levels below 30 up to nearly 70. This rapid swing reflects strong upside momentum in the near term.

However, hourly RSI is now in overbought territory, signaling LINK could be due for a brief pullback after its swift advance. This would be healthy, allowing LINK to establish a new higher low above $6. As long as any dips hold $6, the bull case remains intact.

Fundamental Catalysts Support Upside Potential

On the fundamental side, developers continue building rapidly on Chainlink's industry-leading decentralized oracle network. The number of projects integrating Chainlink price feeds and other services grows every week.

For example, leading Ethereum-based synthetic asset platform UMA recently launched Chainlink-powered data feeds to help securely mint tokenized derivatives. This is just one of dozens of new Chainlink integrations each month, exponentially expanding its reach and utility.

At the same time, staking on the Chainlink 2.0 upgrade has successfully activated, allowing LINK token holders to earn passive yield through staking. This staking yield potential makes holding LINK more appealing.

Given the confluence of bullish technical and on-chain signals, LINK looks poised to continue trending higher over the coming months. The key test will be reclaiming the crucial $10 level that marked the all-time high from 2021.

If buying volume and momentum hold up, LINK should have little trouble clearing this resistance in early 2023. From there, a rally towards $15 looks very achievable.

With Chainlink's leading position in the red-hot Web3 space and steady development progress, a return to record highs could just be a matter of time. Any pullbacks should be viewed as buying opportunities for long-term investors.

As decentralized finance and metaverse adoption accelerates, LINK remains one of the top blockchain projects likely to capture increasing value. The recent price action confirms traders are once again taking notice of LINK's potential.

Given Chainlink's pole position in the Web3 infrastructure stack, LINK retains substantial upside potential this market cycle even after its initial meteoric rise. As blockchain adoption grows exponentially in the coming years, the value being secured and transmitted via Chainlink's network should follow a similar hockey stick trajectory.

With oracle networks representing a critical backbone component of any decentralized network, Chainlink is structurally positioned to capture enormous value. Considering bitcoin reached a market cap of $1.1 trillion at its peak, LINK reaching $100 billion in market cap during this cycle is reasonable.

That would put LINK price around $80, representing a 15x gain from current levels. While not guaranteed, this target is well within reason given the massive growth opportunity as smart contract usage explodes. LINK retesting its all-time high should be the bare minimum expectation this cycle.

For long-term crypto investors, buying LINK around current prices could prove very opportunistic. While further volatility is expected, LINK appears to have bottomed and reversed its downtrend. The technicals, on-chain data, and fundamentals all support substantial upside from here.

Accumulating LINK during periods of fear and consolidation often yields the greatest returns. The recent positive momentum combined with bullish fundamentals indicates now could be an ideal entry point.

However, dollar cost averaging is still recommended rather than going all-in. Consider establishing an initial 25% position, then looking to add on any meaningful dips. This strategy allows exposure to the upside while reducing downside risk.

In summary, LINK's outlook remains highly bullish. The crypto markets move in cycles, and LINK looks ready for the next major upswing. Savvy investors would be wise to take advantage of recent weakness and accumulate ahead of Chainlink's next parabolic advance.

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