Chainlink Price Surges 6.6% to $12, but On-Chain Data Shows a 60% Decrease in Network Activity – Will It Reach $15?

Chainlink Price Surges 6.6% to $12, but On-Chain Data Shows a 60% Decrease in Network Activity – Will It Reach $15?

Crypto News – In the midst of Chainlink’s (LINK) impressive price rally, a noteworthy shift in its network activity has taken place, with a substantial 60% decrease observed over the past week. Meanwhile, the broader crypto market sees Bitcoin stabilizing around the $34,200 level, while altcoins like Solana (SOL), Cardano (ADA), and Chainlink (LINK) forge ahead with their bullish momentum.

Over the last 24 hours, Chainlink’s price has surged by a remarkable 6.6%, inching closer to the $12 mark. This surge is part of a broader 45% gain for LINK over the past 10 days, driven by robust investor activity.

The question on many investors’ minds is whether Chainlink’s price can rally to reach $15. Well-known crypto analyst Ali Martinez has pointed out that Chainlink recently broke through an ascending triangle pattern on its hourly chart, a bullish development that could potentially result in a 14% price increase, possibly pushing LINK towards the $13 level.

It’s important to note that the recent rally to $11.50 has been accompanied by a 90% surge in the 24-hour trading volume. However, prospective investors should exercise caution, as on-chain data raises some concerns about trading activity.

The on-chain data tells a cautionary tale. A chart from CryptoQuant showcases Chainlink’s impressive performance, with a three-month high of 8,086 active addresses on October 23. In just 24 hours following this milestone, LINK’s price soared to $11.50, a level not seen since 2022.

Yet, in the week following October 23, LINK’s active addresses experienced a significant decline, dropping to 3,233 by October 29. This represents a notable 60% decrease in daily network engagement in just one week. A decrease in active addresses is typically considered a bearish sign, indicating reduced demand for the project’s services.

Similarly, data from Santiment reveals a significant reduction in the creation of new addresses on the Chainlink network. The chart illustrates that Chainlink Network Growth reached its highest point in 110 days, reaching 2,465 on October 23. However, in line with the trend observed in active addresses, network growth figures have also seen a sharp decline, plummeting by 60% to 1,008 new addresses as of October 29.

Network Growth is a metric that measures the rate at which new users join a blockchain ecosystem by tracking the daily creation of new wallets. A decrease in network growth can potentially have a negative impact on the prices of the native token of the ecosystem.