Chainlink (LINK) price rebounded to $10 on September 4 after briefly slipping below this figure. This recovery followed the integration of Sonic Labs with Chainlink's Cross-Chain Interoperability Protocol (CCIP), announced on September 3.
The CCIP integration aims to facilitate seamless interaction between Chainlink and Sonic Labs' blockchain. While such developments typically boost token values, data from Santiment indicates an increase in the 90-day Mean Dollar Investment Age (MDIA) since August 28, signaling growing token dormancy.
MDIA measures the average age and purchase price of tokens. An increase in MDIA suggests price growth will be harder to achieve in the short term, as dormant tokens are less likely to re-enter circulation to boost prices.
Additionally, Glassnode's Exchange Net Position Change metric has been declining since late July, indicating a market preference to hold rather than sell tokens. However, the rate of token removal from exchanges has slowed, revealing uncertainty about LINK's short-term prospects.
The daily chart shows LINK's price converging with the Relative Strength Index (RSI), currently at 40.22. This suggests a trend of smaller average gains compared to losses, with LINK trading at $10.22. Without breaking this range, LINK's price might either drop to $9.94 or face upward resistance at $10.86.
If LINK surpasses $10.86, it could reach $12.65, while falling below $9.44 might push the price down to $8.05.
