Chainlink’s on-chain metrics support a bullish thesis for LINK price. The Web3 services platform’s token is likely to extend its gains, riding the bullish wave of declining exchange supply and rising relevance among market participants.LINK price is $15.77 on Binance, at the time of writingChainlink on-chain metrics support recent LINK price gainsChainlink price increased 15.26% week on week, climbing to $16 early on January 17. LINK holders gained nearly 13% month on month in the altcoin’s upward trajectory. According to on-chain data from IntoTheBlock, LINK is currently in a support zone, between $15.56 to $18.78. In this zone, 48,000 LINK addresses have acquired 16.84 million tokens. At the current price, over 92% of wallet addresses holding LINK are profitable. LINK price faces resistance at $18.78. A breakthrough of this resistance will push LINK to $26.94. Global In/Out of the Money. Source: IntoTheBlockChainlink’s social dominance, a metric used to track the relevance of LINK among market participants, hit its near 18 month peak. LINK’s social dominance climbed to 2.164%, a level previously seen in July 2022. This supports the bullish thesis for LINK price gains. Social dominance LINK. Source: SantimentLINK’s supply on exchanges is down to 14.85%, as opposed to August 2022 peak of 18.82%. Decline in exchange supply typically reduces the selling pressure on an asset and supports its price gains. LINK supply on exchanges and price. Source: Santiment At the time of writing, LINK price is $15.77.

Ethereum, the second largest cryptocurrency by market capitalization, noted a considerable decline in its supply on exchange platforms. ETH tokens on exchanges have hit a new all-time low since Ether’s genesis.Ether on exchanges hits lowest level recordedEthereum supply on exchanges now accounts for 8.04% of the asset’s total supply according to Santiment data. This is the lowest level recorded since Genesis. The altcoin’s supply on exchanges typically influences the asset’s price. A reduction in supply is considered bullish as it supports the thesis of declining selling pressure on ETH. There is an increase in active addresses on Ether, as noted by Santiment’s active addresses metric, in the chart below. This supports a thesis for ETH price recovery. Ethereum active addresses. Source: SantimentEthereum trades above $2,200 despite consistent profit-taking by ETH traders since October 2023. The Network Realized Profit/Loss chart indicates whether traders are realizing losses or gains in their ETH trades. Network Realized Profit/Loss. Source: SantimentEthereum price could make a recovery to $2,551, the 61.8% Fib level of ETH’s decline from its April ‘22 peak of $3,582 to June ‘22 low of $883.42. Ethereum price faces resistance at $2,458, and $2,500 as seen in the chart below. ETH/USDT 1-day chartA daily candlestick close below 50% Fib level at $2,232 could invalidate the bullish thesis for Ethereum price. 

LINK price is likely on the brink of a correction driven by increasing profit taking by large wallet addresses in its network. The launch of v0.2 of LINK staking acted as a catalyst for ChainLink, driving price gains in the altcoin, however, now that many large-wallet holders are sitting on unrealized profits there is a risk they may cash in, driving price back down.ChainLink v.0.2 staking pool fills upAccording to a ChainLink tweet on X, posted on December 11, ChainLink’s v0.2 community staking pool has officially filled with over 40.87 million LINK tokens staked – both by users migrating from v0.1 and new participantsExisting stakers could withdraw their staked tokens and make pool space available for new stakers, opening up v0.2 for anyone in the ecosystem. ChainLink price likely to struggle as whales engage in profit takingAccording to on-chain data from crypto intelligence tracker Santiment, there is a bearish divergence in the network growth metric for LINK. Network growth tracks the number of new addresses being created in the asset’s network each day and this can help determine whether LINK is losing traction or gaining adoption among market participants. ChainLink’s network growth currently shows a bearish divergence with LINK price. This supports a thesis of an impending correction in LINK.ChainLink network growth and price Source:ChainLink price risks crumbling under rising selling pressure, as whale wallet addresses engage in profit taking activities. The whale transactions valued at $100,000 and higher coincide with profit taking spikes in the Network Realized Profit/Loss (NPL) metric, between December 1 and 8. This implies, large wallet addresses are booking profits in LINK, which is likely to increase the selling pressure on the asset across exchanges. ChainLink whale transaction count (>$100,000), NPL Source: Santiment LINK price sits above crucial supportChainLink price is currently above the crucial support zone between $14.55 to $15.94 where 38,660 wallets accumulated $84.1 million ChainLink tokens, according to data from IntoTheBlock. LINK price is currently at $16.08 on Binance.It is important to note that 92.49% wallet addresses that are currently sitting on profits could engage in profit taking and drive LINK price lower. Global In/Out of the Money Source:IntoTheBlockIn the event of a decline, LINK price could find support in the zone between $14.55 and $15.94.

Optimism (OP) price has been sitting below a key resistance level for nearly seven months with no signs of breaking out. While many newly listed altcoins are pumping, major altcoins in the Layer 2 sector have not received the memo yet. Like Arbitrum, Optimism price also remains sideways. Optimism price could breakout soon:Optimism price has traded below the $1.86 resistance level for nearly seven months and is currently showing signs of breaking out. After creating multiple higher lows below $1.86, it looks like OP is primed for a breakout. A decisive flip of the $1.86 hurdle into a support floor will confirm a breakout. In such a case, Optimism price could rally 14% and tag the $2.12 resistance level. Beyond this barrier lie two key levels – $2.29 and $2.58. A retest of the $2.58 level would constitute a 38% gain and is where OP would likely consolidate before eying its next move. Supporting this outlook are the Relative Strength Index (RSI) and the Awesome Oscillator (AO), both of which have reset at their respective mean levels of 50 and 0. This move suggests a reboot of momentum, giving OP bulls an opportunity to restart their ascent.OP/USDT 1-day chartWhile the outlook for Optimism price is bullish, investors need to be cautious about the flip of the RSI and AO below their mean levels. If this move occurs, it would suggest that the momentum is shifting from bullish to bearish.If Optimism price flips the $1.45 to $1.57 demand zone into a resistance level, it will create a lower low and invalidate the bullish thesis. In such a case, OP could slide lower and find support around $1.40.

• CME Group (CME). | $77 billion• PayPal Holdings, Inc. (PYPL). | $59 billion• Block Inc. (SQ). | $30 billion • Interactive Brokers Group Inc (IBKR). | $9 billion• SoFi Technologies Inc (SOFI). | $7 billion • Marathon Digital (MARA). | $2 billion