Buoyed by Crypto Adoption Headwinds, Here’s How LINK Prepares for a Rally

Chainlink has had a good week in terms of development. The team announced the Chainlink Spring 2022 Hackathon scheduled for April 22, along with a slew of other integrations. But what stood out was the price action which showed strong growth today.

Chainlink saved from another dip

LINK was one of the top performers of the day as it rose to the high of $14, which was actually the low of 2 weeks ago, but this was a necessary rise as the altcoin sank below the support of the falling wedge before recovered quickly.

Regardless, the coin will now face the renewed resistance at $15.56 as this level has been tested multiple times in the past as both support and resistance.

Chainlink price promotion | Source: TradingView – Coin-Crypto

While the price action does its own thing, investors also trade freely. Since the beginning of this year, more and more investors have become impatient or have given up on the possibility of a speedy recovery.

Thus, they shift more to sitting still than to make any movement.

On-chain transactions that were once around 9k have now dropped to just 2.5k and this has also impacted transaction volume. From $370 million, daily volume was $62 million yesterday.

Chainlink Transaction Volumes | Source: Intotheblock – Coin-Crypto

In addition, LINK holders, depressed by the price drop from March 10, completely exited the market. About 1,500 LINK holders have sold their property and left the space.

Chainlink Addresses | Source: Intotheblock – Coin-Crypto

But as they sold other investors who had been watching the price action like a hawk, they bought back these tokens in an effort to gain access to crypto.

In the past 10 days, 2 million LINK worth about $28 million has left the exchanges.

However, Chainlink has the support of its HODLers who have remained unchanged since January last year. About 72% of Chainlink’s 1 billion LINK supply has been locked up for over a year.

However, this 713 million LINK is managed by only 311k addresses, which is equal to the number of medium-term holders who hold about 24% of the total supply.

Chainlink delivery distribution | Source: Intotheblock – Coin-Crypto

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