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- Bulls claimed the $7 price level on the second retest.
- On-chain metrics highlighted LINK’s continued accumulation
Chain link [LINK] rose another 9% over the past 24 hours to take it above the key resistance level at $7. LINK’s on-chain activity registered significant growth with an increase in the number of new addresses. This led to increased liquidity for the token, fueling the current bullish trend.
Read Chainlink’s [LINK] Price forecast 2023-24
Bulls will look to build on this bullish rally, with a climb to a new high before 2023 looking likely in the long term.
Bulls join in regaining the critical price level
Source: LINK/USDT on Trading View
After breaking through a compact price range with a strong rally, the next obstacle in front of the bulls was the $7 resistance level. Bulls quickly moved towards the resistance level but were quickly rejected on the first attempt on September 20.
However, the buyers regrouped and the second retest yielded a positive result, with the bulls climbing above the $7 level.
The extended bullish momentum was supported by the indicators on the chart. The Relative Strength Index (RSI) continued to rise and stood at 67 at the time of writing, highlighting the strong purchasing power that supported the bullish rally.
Similarly, On Balance Volume (OBV) recorded an increase of over 6 million during the same period.
A continuation of the bullish momentum could allow buyers to post further gains at $7.5 to $8. On the other hand, a decline below the $7 price level would negate the bullish thesis and LINK could enter into another sideways price move.
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Buyers continue to collect LINK
Source: Santiment
The exchange data of Santiment showed a huge spike in foreign exchange outflows on September 19 and 21. This indicated significant accumulation of LINK, which contributed to a price increase.
Similarly, the 1990s Mean Coin Age maintained its upward trend despite a slight decline. With market participants buying up LINK, this bullish rally can be sustained over the long term.
