Chainlink: Despite good news all around, why is LINK having such a tough time

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From a devel­op­men­tal point of view, this past week was a great week for the Chain­link Blockchain.

On 7 June, the Net­work pub­lished a roadmap and ini­tial imple­men­ta­tion of stak­ing with­in the Chain­link net­work which “is to give ecosys­tem par­tic­i­pants, includ­ing node oper­a­tors and com­mu­ni­ty mem­bers, the abil­i­ty to increase the secu­ri­ty guar­an­tees and user assur­ances of ora­cle ser­vices by back­ing them with staked LINK tokens.”

Fur­ther­more, dur­ing the course of the past week, the Net­work record­ed 20 inte­gra­tions of Chain­link ser­vices such as Chain­link Exter­nal Adapter, Chain­link Price Feeds, and Chain­link VRF across five dif­fer­ent chains.

As the rest of the cryp­tocur­ren­cy mar­ket strug­gles to ward off the bears, did Chainlink’s Native token, LINK, cap­i­tal­ize on these net­work devel­op­ments to reg­is­ter some growth? Let’s take a look.

It’s a price decline…

Start­ing the week at an index price of $8.0, the LINK token reg­is­tered an intra week growth of over 10% where it record­ed a high of $9.45. How­ev­er, a price cor­rec­tion occurred which led the bears to force a down­ward run. At press time, the LINK token exchanged hands at $5.84, reg­is­ter­ing a 27% over the course of sev­en days. 

Source: Coin­Mar­ket­Cap

As a nat­ur­al con­se­quence of a drop in price, the mar­ket cap­i­tal­iza­tion also reg­is­tered a decline. Mark­ing a high of $4.40 bil­lion dur­ing the week, the mar­ket cap­i­tal­iza­tion also wit­nessed a 26% drop with­in the past sev­en days.

As price went up on 9 June, the Rel­a­tive Strength Index (RSI) ral­lied up and touched the 61 spot. How­ev­er, the bears forced a cor­rec­tion that led this indi­ca­tor on a down­ward trend since then. At press time, the RSI for the LINK token was sta­tioned at 36.42, inch­ing clos­er to the over­sold region. 

The Mon­ey Flow Index (MFI) also saw a high of 75 on 9 June. Stand­ing at 57 at the time of writ­ing, investors were spot­ted tak­ing prof­its thus, forc­ing the MFI on a down­ward curve.

Source: Trad­ingView

Up and down goes the…

On-chain analy­sis revealed that the LINK token swung high and low at dif­fer­ent points across dif­fer­ent met­rics over the course of the last sev­en days. The num­ber of active address­es that trans­act­ed the LINK token saw a drop on 10 June. By 11 June, this met­ric pro­ceed­ed to reg­is­ter a 9% growth. At press time, this was pegged at 2,410, a 22% uptick from the 1,876 it lodged sev­en days ago.

Source: San­ti­ment

Fur­ther­more, the token record­ed saw spikes in whale trans­ac­tions count on 8 June and 9 June. For trans­ac­tions over $100k, the count went up by 29% on 8 June. This, how­ev­er, pro­ceed­ed on a steady decline to reg­is­ter a 45% drop by press time. Sim­i­lar­ly, for trans­ac­tions above $1 mil­lion, a 22% uptick was record­ed on 9 June. By press time, this fig­ure was down by 80%.

Source: Unsplash

Over the course of this past week, the bulls and bears appeared to have trailed one anoth­er close­ly as bull­ish and bear­ish sen­ti­ment reg­is­tered 80% and 84% spikes respectively.

Source: Lunar­Crush

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