LINK Price Soars 33% in September: Is Chainlink Eyeing For 2x?

• LINK price has surged over 13% in the past 48 hours, driven by Bitcoin‘s rise and integration news.
• On-chain metrics show increased positivity, with 41% of holders in profit.
• The token must break above the 200-day EMA band for broader market confidence.

Chainlink (LINK) price has experienced a notable 33% increase this September, emerging from its demand zone. This week’s strong momentum has brought its price close to the 200-day EMA band. The token has effortlessly surpassed the 20-day and 50-day EMA bands.

The LINK price has attracted even more attention with a significant intraday surge, pushing its value above the $12 mark. Bitcoin’s (BTC) recent rise to $64,000 intraday drove this spike, along with integration news. As a result, LINK has become one of the day’s top gainers.

Read on for more insights into whether the LINK price will continue to rise or remain below the 200-day EMA band.

LINK Price after 21.co, Integration Displayed Pumped Optimism

In the past 48 hours, the LINK coin price grew more than 13%. When writing, it traded at 12.258 with an intraday 8% growth. This surge was led by the news reposted by Chainlink‘s official handle on X.

On September 23, 21.co, the parent company of 21Shares, announced the integration of Chainlink’s proof of reserve with its Bitcoin wrapper, 21BTC.

This integration benefits LINK by showcasing its technology’s practical application and reliability in securing financial assets.

Similarly, the increased trust and adoption of crypto’s proof of reserve can drive demand. This could potentially boost the LINK price.

.@21co__ has integrated Chainlink Proof of Reserve (PoR) on @ethereum & @solana to enhance reserves transparency for 21BTC, its wrapped Bitcoin.

How PoR provides the Ethereum & Solana ecosystems with assurances that 21BTC is fully backed 1:1 by BTC https://t.co/kUqFTlofcJ pic.twitter.com/SD6UdG4ABV

— Chainlink (@chainlink) September 23, 2024

Moreover, this move by 21.co aims to address concerns about the 21BTC backing. It will do so by providing real-time verification of Bitcoin reserves. By doing so, it enhances security and prevents potential malicious attacks.

The Chainlink crypto‘s proof of reserves system works effortlessly, automatically auditing financial data. This includes off-chain reserve balances and updates a blockchain-based smart contract in real-time.

Therefore, the demand for LINK crypto could grow as more institutions and asset managers recognize the value of Chainlink’s solutions. This would support a positive price trend in the long term.

On-chain Metrics Paint Optimism After Integration

Following the integration, the LINK price has surged, reflecting increased positivity in its key on-chain metrics. This September rise has improved financial data, with 41% of holder addresses now in profit. On the other hand, 53% remained at a loss.

The recent price optimism has improved positions, and further growth could significantly enhance these figures.

Bitcoin’s push toward testing $64,000 intraday has supported LINK’s price surge, given its strong correlation with BTC at 0.86. The total number of addresses declined earlier this month.

However, the number of addresses with a LINK crypto balance has risen this week. This indicated renewed buying interest. Currently, there are 686.16K addresses with a balance.

Transaction activity has also increased, increasing from a low of 2.14K to 2.74K this week. Notably, transactions exceeding $100K have grown, reaching $1.01 Billion. Additionally, long-term holders (over one year) now account for 536.92K addresses, showing an upward trend.

Sharpe Ratio Moving Upward

Since mid-August, LINK’s Sharpe ratio has steadily climbed and recently crossed into positive territory. At press time, it stood at approximately 0.32.

A positive Sharpe ratio generally indicates that the potential rewards of investing in LINK outweigh the associated risks. With a value of 0.32, the current market conditions appear favorable for purchasing LINK. This could potentially lead to an increase in its price.

Will LINK Price Rise 2x Before 2024 End?

The weekly chart shows that the LINK coin price was previously deflected from a major zone that once acted as support. However, it has become a supply zone, pushing the price downwards.

However, on the daily chart this month, LINK’s price has shown growth, breaking through the 20-day and 50-day EMA bands. Currently, LINK is targeting the 200-day dynamic EMA band.

If the bullish momentum continues, LINK’s price could potentially double. However, LINK needs a change of character by piercing to gain broader market confidence. It must also sustain above the 200-day EMA band and the $13.147 mark.

Per Chainlink price analysis, suppose the bullish rally accelerates; the next targets are $15 and $16.50, respectively. Conversely, the bearish trend may persist if the 200-day EMA band deflects the price and fails to achieve a ChoCh.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.