Chainlink Enters Consolidation Phase – What's Next for the LINK Price?

Chainlink (LINK) price has stagnated at the $11 range as bulls struggle to extend the rally further. On-chain analysis pinpoints 3 critical metrics that could trigger a prolonged consolidation phase in the days ahead.

Timeline of Chainlink

With Bitcoin stabilising close to the $34K mark, the overhead rejection at $35K brings an abrupt halt in the booming altcoin market. Altcoins like LINK display a price trend, losing momentum as it approaches the next resistance level.

Currently, Chainlink's price is gaining ground above the $10.00 mark and the 100-day simple moving average against the US dollar. On the daily chart for the LINK/USD pair (data source: Kraken), there's an important bullish trend line taking shape, with support around $8.60.

The announcement of LINK's Staking v0.2 may have given the altcoin a bullish edge. However, investors and traders may have to wait for a move above $7.87 to invalidate any bearish bias.

Chainlink announces its largest hackathon, Constellation, from November 8 to December 10, 2023, with a $350,000 prize pool across seven core tracks. This event follows the trajectory of growth from Chainlink's inaugural hackathon in 2020.

Crypto analytics firm Santiment finds that large wallets are gobbling up the native asset of the decentralized oracle network Chainlink (LINK). Santiment notes that addresses holding between 100,000 and 1 million LINK have accumulated $38.5 million worth of the crypto asset in the past week.

Cobo Argus has integrated Chainlink Price Feeds on Arbitrum mainnet to bolster its automated DeFi strategies, enhancing security and facilitating swift fund withdrawals during token depegs. This collaboration with Chainlink also underscores Cobo Argus's commitment to providing fortified, efficient on-chain DeFi management solutions.

Chainlink price is on the move to trim the gains accrued following the pump from September's lowest support at $5.8. The token native to one of crypto's most sought after oracle live price feed platforms, climbed to highs at $8.26 late last week before bowing to the ongoing selling pressure.

Oracle service provider Chainlink (LINK) has been one of the top-performing altcoins over the last few weeks shooting past $8 last week. However, the Chainlink party seems to be coming to an end with the LINK price currently under a strong retracement and dropping by another 4% in the last 24 hours.

An on-chain signal that preceded crashes of at least 34% for Chainlink in the past has once again formed for the cryptocurrency. Chainlink 30-Day MVRV Ratio Recently Hit The 20% Mark As explained by an analyst in a post on X, the last two times the 30-day MVRV ratio broke above the 19% level, the price of LINK registered a sharp decline.

Given Chainlink's latest update, several traders may show a newfound interest in the token. However, LINK's rally could be due for a cool down in the short run now that it was drawing closer to overbought territory.