Chainlink sees decent upside as LINK on exchanges drops to 4-year low

Chainlink (LINK) price has held above the $12 level since breaking higher in late October 2023. This past weekend, the cryptocurrency currently ranked 14^th by market cap saw a slight breakout that came as the broader altcoin market struggled alongside Bitcoin (BTC).

According to analysts at Santiment, Chainlink’s upward move to highs above $15.82 saw it hit a two-week high. These gains came as the supply of LINK on exchanges fell significantly, with under 15% of the tokens on exchanges. 

The 14.87% figure is the lowest this metric has reached in four years, the last time exchange balances stood at these levels being in February 2020.

The market intelligence platform shared the analysis in a post on X.

🔗📈 #Chainlink enjoyed a mini breakout this weekend, hitting $15.82 for the first time in 2 weeks. The supply of $LINK on exchanges is below 15% for the first time in ~4 years, and the amount of >0 coin wallets is within 6% of its #AllTimeHigh. https://t.co/IodNDKZl5q pic.twitter.com/OLTFxfuVlw

— Santiment (@santimentfeed) January 15, 2024

Meanwhile, the number of LINK wallets with more than zero coins rose and was about 6% from its previous all-time high. As of January 10, the wallets numbered 713,560.

LINK price outlook

As Bitcoin continues to hover in the post-spot ETF trading range between $41k and $43k, most altcoins are mirroring this outlook with lackluster performances of their own.

Ethereum price is just above $2,520, while XRP, BNB and Solana are trading around $0.57, $317, and $95 respectively. SOL price has dipped more than 5% in the past 24 hours, the biggest drop among the top 10 cryptocurrencies by market.

Meanwhile, Chainlink price is up 1.2% in the past 24 hours and 13% this past week. Currently, LINK/USD is changing hands around $15.44. Will it surge further or are sellers poised?

Crypto analyst Ali Martinez says there is a ‘solid demand zone’ for LINK between $14.8 and $15.2. This price level saw more than 17,600 addresses acquire 85.1 million LINK. The analyst predicts a potential continuation to $20.

Apart from the broader crypto market conditions, growth in the tokenization space could help Chainlink price in the medium and long term.

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