Chainlink (LINK) price has scored 17% gains over the past week, edging towards reclaiming the $7 on September 19. The Chainlink price uptrend seems to have correlated with the Real World Assets (RWA)’s recent rise to prominence. On-chain analysis explores if this correlation could evolve into a prolonged LINK price rally.
This week, Chainlink’s (LINK) 17% price rally seems to have been propelled by the investors’ switching attention to the Real World Asset (RWA) sector. Several Real World Asset projects typically adopt price feeds and Oracle infrastructure to integrate offline data into their blockchain network. Recently, Beincrypto reported that the RWA sector reached an all-time-high valuation of $3.1 billion.
Will the growing demand for Chainlink feeds and Oracle infrastructure propel LINK price into a sustained price rally?
New Investors are Entering the Chainlink Ecosystem Amid the Real World Assets Rave
Chainlink (LINK) has recorded a significant influx of new users in recent weeks as the Real World Asset projects continue to grow in valuation and traction. On-chain data from Santiment shows that Chainlink recorded 865 new wallet addresses on September 17. Notably, the last time Chainlink Network Growth figures exceeded this was August 16.
Will Chainlink (LINK) Price Recalim $10 Amid Real World Asset Rave | Network Growth, Sept 2023. | Source: Santiment
By tracking wallet addresses created daily, Network Growth estimates the number of new users joining a blockchain network. Typically, an increase in Network Growth during a price uptrend suggests that the rally is driven by organic factors rather than mere speculative trading activity.
As seen above, the new users began tripping into the Chainlink ecosystem around September 10, just a few days before the Real World Assets rave powered the sector to an all-time high valuation.
Hence, considering that Chainlink’s core service offerings are a vital part of the functionality of Real World Asset projects, LINK Network Growth will likely continue to increase as long as the sector’s demand.
Ultimately, this could propel the ongoing Chainlink price rally even further in the coming days.
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Whale Investors Are Capitalizing on the RWA Rave to Stack Their Bags
While new retail market participants are joining the Chainlink ecosystem en masse, a smart-money cohort of whale investors has also capitalized on the RWA rave to stack their bags.
The Santiment chart below shows that crypto whales holding 100,000 to 1 million LINK had only 118.05 million tokens in the balances as of August 30. By Sept 19, they added 2 million LINK tokens to their cumulative balances.
Will Chainlink (LINK) Price Recalim $10 Amid Real World Asset Rave | Network Growth, Sept 2023. Source: Santiment
With LINK prices currently sitting at $6.90, the newly acquired 2 million tokens are now worth approximately $13.8 million on the open market. Notably, this historical buying pattern of this Chainlink whale cohort has often been closely correlated to previous price rallies.
If this phenomenon reoccurs, the whales’ bullish momentum and growing network demand could propel Chainlink toward reclaiming the $10 territory.
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LINK Price Prediction: The Bullish Whales
From an on-chain perspective, Chainlink’s price looks set to reclaim the $10 territory, especially if the RWA rave continues and the whales maintain their bullish disposition.
The In/Out of Money Around Price data, which depicts the purchase price distribution of current Chainlink investors, also validates this bullish prediction. It shows that if LINK’s price can scale the $8.50 mark, it would face minimal resistance on the road to $10.
Although, as shown below, 62,480 addresses bought 76.52 million LINK tokens at the average price of $8.54 poses strong resistance. But, if the demand for Chainlink’s price feeds continues growing, the ongoing LINK price rally could hit $10.
Chainlink (LINK) Price Prediction – IOMAP data. Sept 2023. Source: IntoTheBlock
Conversely, if the negative sentiment in the crypto markets returns, the bears could force a major downswing below $5.
However, as shown below, 18,750 addresses had bought 250 million LINK tokens at an average price of $6.50. They could offer considerable support if they make last-ditch efforts to cover their positions.
But if that support level cannot hold, then Chainlink’s price could eventually drop toward $5.
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