Chainlink has seen a monster-sized rally in recent years, the profits of which have been surpassed by virtually all other major old coins.
This momentum reached a boiling point last night when crypto peaked at nearly $ 8.50 before encountering resistance that slowed its rise and catalyzed a slight sell-off.
It is important to note that the upward trend in cryptocurrency is being driven by fundamental strength and data in the chain suggest that this could mark a long-term trend.
LINK's stock exchange balance has been declining in recent weeks and months, and exchange rate outflows for the token reached a new all-time high last night.
This signals that investors are looking to chainlink positions over the long term and may not be able to outsource them for some time.
Chainlink flashes signs of immense underlying strength after the last climb
At the time of writing, Chainlink is trading slightly at its current price of $ 7.42, which is a notable drop from the daily high of just under $ 8.50.
Resistance at this level has been insurmountable for buyers, and crypto has dropped since then.
Still, given its short-term price history, LINK still seems to be incredibly strong as it is still trading well above its 24-hour lows in the $ 6,000 region.
There has also been a steady upward trend over the past week, rising from the low of $ 5.60 a few days ago.
This price movement has come about independently of the rest of the cryptocurrency market as Bitcoin is currently trading sideways in the lower $ 9,000 region.
BTC's consolidation phase appears to be an ideal backdrop for the Altcoins rally as many have seen significant gains in recent weeks.
Although market-wide pumps in Altcoins are often followed by sharp declines, Chainlink may be able to avoid a possible setback due to its fundamental strength.
Glassnode data shows that outflows from LINK exchanges hit an all-time high last night, indicating that investors have moved their tokens away from exchanges and into wallets for cold rooms.
Image Courtesy of Glassnode.
This is usually a sign that the investor base of an asset is taking a long-term approach to its positions.
Analyst: LINK is ready to recover to $ 10 in the coming months
A popular cryptocurrency analyst explained He believes Chainlink is well positioned to move towards $ 10 by the end of the year.
"LINK HTF Update: Quite a perfect $ 4 retest that I was looking for in the past two months … Currently it has risen over 100% in the past month, and is likely to target $ 10 this year," said he.
Image Courtesy of Cactus. Chart via TradingView.
Since Chainlink appears to be in a full pricing mode, there is no telling how far it can go before losing steam.
Featured image from Shutterstock. Charts from TradingView.