Can Chainlink (LINK) Price Reach $10 in October? – Key Indicators 

Key Insights:

• Chainlink (LINK) emerged as one of the best-performing assets in the top 20 crypto rankings last month, delivering 35% price gains.
• The number of LINK tokens deposited in crypto exchange reserves dropped to 152 million on October 4.
• Despite a mild correction this week, a spike in market demand could potentially propel Chainlink’s price toward $10.

By deploying blockchain infrastructure to integrate off-chain price feeds, Chainlink has benefitted significantly from the recent asset tokenization and Real World Asset (RWA) rave. 

In effect, Chainlink (LINK) price delivered 38% gains in September 2023 to emerge as one of the best-performing assets in the top 20 crypto rankings. Crucial on-chain metrics now suggest that Chainlink bulls could build on the winning streak in October 2023.

Chainlink Exchange Deposits Have Declined to Historic Lows 

Chainlink attracted considerable media attention last month has it emerged top gainer for September in the top 20 crypto rankings. While LINK price retraced slightly below $8 this week, on-chain data shows now that the bulls are regrouping to push for further gains in October. 

The CryptoQuant chart below vividly depicts that LINK Exchange Supply declined to 152 million tokens on Wednesday. And notably this is lowest exchange reserves levels since Chainlink introduced its native staking program back in June 2022. 

Exchange Supply is a snapshot of the total deposits that holders of a cryptocurrency currently hold in recognized exchange-hosted wallets. 

Typically, when exchange supply decreases in a bull market, it means that optimistic holders are shift tokens into long-term storage. Hence, with exchange supply now at historic lows, any significant uptick in market demand could potentially trigger a Chainlink price rally.  

LINK Price Prediction: The $10 Mark is Within Reach

From an on-chain perspective Chainlink is now in pole position to reclaim the $10 territory in the coming weeks. 

The Global In/Out of Money Around Price data, which depicts the entry price distribution of current LINK holders investors, also supports to this position.

It depicts that if Chainlink bulls knockdown the initial sell-wall around $9, the LINK price rally could accelerate toward $10. 

As illustrated below, the 43,500 addresses had purchased 46.45 million LINK tokens at an average price of $9. If they book early-profits when LINK prices enters that range, they could trigger a bearish reversal.

But if the drop in exchange reserves causes a supply squeeze as predicted, then Chainlink price rally could promptly hit $10.  

On the other hand, the bears could invalidate this bullish prediction if Chainlink price wobbles below $5. However, in this case, 68,300 holding addresses purchased 535.8 million LINK at the average price of $7. Considering this is the largest group of current Chainlink holders, they will offer significant support. 

But if the Chainlink bulls fail hold the critical $7 support territory, then the bears could force a major reversal toward $5.