Chainlink (LINK) is up nearly 24% in a week, with the current price trading at $15.65. According to data from on-chain analytics firm Santiment, the increase in active addresses activity is the reason behind this rally in the LINK price. Since February 24, the start of the Russia-Ukraine war, every rise in the active addresses had pushed the price to shoot higher.
Active Address Price Divergence Data Indicates Bullish Sentiment
Santiment reports in a tweet on Monday that the active address to price divergence chart shows points of bullish price movements. Typically, the LINK price has rallied after the active address to price divergence moves in the green zone, as depicted in the chart. The Santiment data also reveals the retracement levels where the price movements have generally reversed.
“#Chainlink is +24% since bottoming out on #war news back on February 24th. Upticks have been driven by spikes in $LINK address activity, where pushes in active address/price divergence into the green zone have worked as excellent #bullish validators.“
In January, the Chainlink active address to price dipped massively, bottoming out near the level of 68, which resulted in the LINK price plummeting rapidly.
Also, in March, the Chainlink active address to price has moved in the green zone, forming numerous spikes, resulting in the LINK price moving higher. Thus, the current data validates bullish sentiment, pushing the price to move higher from here.
LINK Price Movement Expectations
As per the current Santiment active address price divergence data, the price is expected to move higher in the next couple of days. At the time of press, the LINK price has rallied nearly 7% in the last 24 hours, with the price trading near $15.65.
The price action paints a bullish movement in the upside channel, looking to cross the resistant level at $15.80. If the LINK price breaks the March 2nd resistance level, it could move significantly higher.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/chainlink-up-24-on-chain-data-suggests-bullish-sentiment/