This week, the price of Chainlink token (LINK) demonstrated positive dynamics, increasing by more than 5%. This growth resulted from heightened investor interest and record liquidity flows.
Sharp Rise in LINK Prices
LINK prices started the week with a strong bullish momentum, leading to an increase of more than 5%. This surge is a continuation of the trend observed in the first half of August, resulting in a 69% price increase since the beginning of the month. This positions LINK among the top-performing cryptocurrencies in August.
Brief History of LINK Liquidity
LINK recorded its highest daily liquidity flows, confirming strong investor interest. On Sunday, net inflows reached nearly $28 million, the highest level observed in over 10 months. Additionally, LINK's derivatives volume also hit historically high levels above $5 billion.
Risks Associated with LINK Price Rise
Despite the positive indicators, certain risks are present. During the recent rally, LINK's price exceeded $25, but an increase in long position liquidations signals the potential for high volatility. The anticipated resistance price for LINK is around $27, as the token is moving within a 'cup and handle' pattern.
In a short period, LINK demonstrated strong growth driven by increased liquidity and interest from major investors. However, it's crucial to monitor potential risks associated with market volatility.
