Will Bulls Break $8 Resistance for the ChainLink (LINK) Price

2023-08-08, 07:29

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## Introduction
Several factors may affect the price performance of an investment asset like cryptocurrency. Unlike other investment assets, cryptocurrencies usually respond to market changes quickly and by high price margins. This analysis explores the recent change in ChainLink price. We will also cover factors that are likely to influence its future price performance.

Read also: [Chainlink 2.0 - A game changer?](https://www.gate.io/learn/articles/chainlink2-a-game-changer/292 "Chainlink 2.0 - A game changer?")
## Chainlink Fails to Break above $8
Chainlink token rallied by 26% in July, rising from under $6 to $8.50 on 14 July, a day [after Ripple's partial victory over the SEC](https://www.gate.io/ru/blog_detail/2960 "after Ripple's partial victory over the SEC"). However, <a href="/uk/price/link-ln" target="_blank" class="blog_inner_link">LINK</a> failed to break above $8.50 but entered a consolidation period that lasted for two weeks. On the other hand, it did not slip below the $7.50 level which has become a key support point.

As such, after the Chainlink token experienced a 12% rejection during the third week of July its price fluctuated within a small below $8 which is a key resistance level. Nevertheless, the market wonders if the LINK bulls can push the price above $8 or at least maintain its position above $7.50. On 30 July LINK was trading at $7.67, after losing by 1.08% within 24 hours.

In all the [ChainLink crypto](https://www.gate.io/price/chainlink-link "ChainLink crypto") gained by around 30% within July. It is important to note, though, that LINK had a minor retracement during the third week of July. Despite such minor pullback the on-chain data indicate that bulls have a stronger advantage over the bears and may soon push its price higher.  
## Long-term Chainlink Investors Hold on to their Tokens
Even after LINK gained by about 30% within a month LINK holders expect more. The Age Consumed Data by which Santiment compiled shows a remarkable decrease in the number of long-term LINK holders who sell off their tokens. 
Although the Age Consumed increased to around 627.2 million on 20 July, it dropped to 100.73 million, a fall by about 87%. The following graph shows the change in Age Consumed from 20 to 28 July. 
![](https://gimg2.gateimg.com/image/article/16914796601.png)
Chainlink Age Consumed - Santiment

We get the Age Consumed by multiplying the number of tokens that have been recently traded by the number of days they were last moved. As <a href="/uk/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> indicates, a persistent decrease in the Age Consumed means that the investors are holding on to their coin or token for a longer duration than before.

It also seems that the LINK bull traders aim to push the value of the token up and are determined to avoid another rejection at the $8 level. Data on IntoTheBlock's aggregate exchange order book indicates that the LINK bulls have placed active orders to acquire 2.12 million LINK tokens. Yet, there are only 2 million Chainlink tokens for sale.

Read also: [How to buy ChainLink on Gate.io](https://www.gate.io/how-to-buy/chainlink-link "How to buy ChainLink on Gate.io")

Based on the above statistics, the demand for LINK outweighs the supply by about 123,000. On-chain data also indicates an interesting development. According to the data, the wallet addresses that used to hold between 1,000 and 10,000 LINK tokens before July accumulated over 450,000 during the month. The same trend has been noticed on whales that hold between 1,000,000 and 10,000,000 LINK tokens. This may show that find value in the token.

Right now, Chainlink token traders and other investors should keep a keen eye on its price movement as there are two open possibilities. If the <a href="/uk/price/link-ln" target="_blank" class="blog_inner_link">LINK price</a> rises above the $8 resistance level that could be a great sign of a possible bullish resurgence.

The other possibility is that the LINK price may drop below the $7.50 support level, giving investors an opportunity to accumulate more. Basically, the bulls have defended this position for a long period which makes it a vital market entry point, should the price break out below it. 
## Reasons Why Investors have Interest in ChainLink Token
There are several reasons why investors find value in the LINK token. For example, many developers have [interest in ChainLink](https://www.gate.io/learn/articles/what-is-linktoken/233 "interest in ChainLink") as they can integrate different protocols. Already it has integrated over 300 protocols which include DeFi applications, nodes and data providers. Therefore, the more crypto projects that connect with Chainlink the more valuable the token becomes.

Secondly, it has great Oracle Services Functionalities and it is the leading blockchain oracle. Essentially, Chainlink enhances the exchange of valid and reliable data which the blockchain industry requires. Therefore, Chainlink’s expansion creates more value for the LINK token. Read also [ChainLink price predictions forecasts](https://www.gate.io/price-prediction/chainlink-link "ChainLink price predictions forecasts")
## Conclusion 
Recently, Chainlink rolled out its Cross-Chain Interoperability Protocol (CCIP) which enables a greater adoption of the blockchain than before. With this protocol Chainlink acts like a cross-chain bridge that enables a single token to be used across many blockchains. Therefore, the CCIP has catalyzed the recent LINK price rise.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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