Chainlink price gains could extend riding on bullish on-chain metrics

Chainlink’s on-chain metrics support a bullish thesis for LINK price. The Web3 services platform’s token is likely to extend its gains, riding the bullish wave of declining exchange supply and rising relevance among market participants.

LINK price is $15.77 on Binance, at the time of writing. 

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Chainlink on-chain metrics support recent LINK price gains

Chainlink price increased 15.26% week on week, climbing to $16 early on January 17. LINK holders gained nearly 13% month on month in the altcoin’s upward trajectory. According to on-chain data from IntoTheBlock, LINK is currently in a support zone, between $15.56 to $18.78. In this zone, 48,000 LINK addresses have acquired 16.84 million tokens. 

At the current price, over 92% of wallet addresses holding LINK are profitable. LINK price faces resistance at $18.78. A breakthrough of this resistance will push LINK to $26.94. 

Global In/Out of the Money. Source: IntoTheBlock

Chainlink’s social dominance, a metric used to track the relevance of LINK among market participants, hit its near 18 month peak. LINK’s social dominance climbed to 2.164%, a level previously seen in July 2022. This supports the bullish thesis for LINK price gains. 

Social dominance LINK. Source: Santiment

LINK’s supply on exchanges is down to 14.85%, as opposed to August 2022 peak of 18.82%. Decline in exchange supply typically reduces the selling pressure on an asset and supports its price gains. 

LINK supply on exchanges and price. Source: Santiment 

At the time of writing, LINK price is $15.77.