Chainlink (LINK) Brushes Off Market Downtrend, Scores 11% In Last Week

Chainlink has remained bullish despite the bearish pressure in the broader crypto market. The crypto closed bullish at $7.4 yesterday, September 26, with over 7% increase. 

LINK remains bullish, with an 11% seven-day price increase and over 2% gain in the last 24 hours. But while the token’s price continues to increase, data shows the trading volume has declined 17% in the last 24 hours. What could be the reason behind this contradiction?

In an X post on September 24, Chainlink network announced it had recorded multiple integrations across six blockchains. These include Arbitrum, Ethereum, Optimism, Avalanche, Polygon, and BNB Chain.

Also, yesterday, September 26, gaming platform BetSwirl announced that it integrated Chainlink’s CCIP across Ethereum, Polygon, Avalanche, and Arbitrum. According to the post, this CCIP integration will help “BetSwirl enable seamless, secure, and reliable cross-chain token transfers”

Related Reading: XRP Price Analysis: 4-Month Chart Dynamics Decoded By Crypto Analyst

This increased adoption across multiple chains expanded Chainlink’s user base, a plausible factor behind LINK’s resilience amid the prevailing bearish market.

Although LINK briefly slipped off the $7.5 level to $7.3 yesterday, it has since recovered momentum. Given the ongoing movement, the crypto asset could break the $7.8 resistance and record higher highs soon.

Meanwhile, Chainlink (LINK) is number 3 among the top weekly gainers after CRV and PEPE. It has also secured a position on the top daily gainers’ chart.

Although the price strides are bullish, the trading volume, down 17%, raises concern about whether LINK can sustain the rally. It indicates reduced trading activity, a possible sign that buyers have reached saturation and paused to weigh their next move. 

This setup bodes badly for LINK as it could signal the entrance of sellers, which will exert downward pressure on the token’s price.

According to Santiment’s report on September 24, Chainlink remains one of the best-performing cryptocurrencies in September. It outlined that, unlike most assets, LINK’s price often records an initial boost when holders move their tokens from exchanges.

Santiment noted that the asset’s price increased 23% in two weeks as the exchange supply flowed back to cold wallets. Also, the analytics platform reported that LINK exchange supply increased by 17.2%, reaching a 2023 high on September 14.

However, on September 24, 10 days later, the token’s exchange supply dropped to 16.4%. This observation is a plausible reason behind Chainlink’s declining trading volume. 

Meanwhile, as of the time of writing, LINK trades at $7.64, with a 2.88% price increase in the last 24 hours. The token trades above the simple moving averages of $6.494 and $6.719 and two key support levels. 

LINK is approaching the overbought area, forming a bullish candlestick as buyers vie to conquer the $7.823 resistance.