Chainlink investors looking beyond LINK’s price could find some respite here

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  • Chain­link clinched an all-time high in the count of its dai­ly social contributors.
  • Its price con­tin­ues to decline, and its out­look in the short term remains bearish

Recent data from cryp­tocur­ren­cy social ana­lyt­ics plat­form Lunar­Crush revealed that LINK, Chainlink’s native token, clinched an all-time high of 35,540 in its num­ber of dai­ly social contributors.

Read Chainlink’s [LINK] price pre­dic­tion 2023–2024

The ral­ly in social activ­i­ty came after the lead­ing ora­cle net­work announced the first 10 par­tic­i­pants in the maid­en edi­tion of its Chain­link BUILD program.

First announced in Sep­tem­ber, the Chain­link BUILD pro­gram formed part of its Chain­link Eco­nom­ics 2.0. Through this pro­gram, ear­ly-stage and estab­lished projects with­in Chain­link are pro­vid­ed with “enhanced access to Chain­link ser­vices and tech­ni­cal sup­port in exchange for com­mit­ments of net­work fees and oth­er incen­tives to Chain­link ser­vice providers, such as stakers.”

LINK on a daily chart

Ranked as the #21 largest cryp­tocur­ren­cy with a mar­ket cap­i­tal­iza­tion of $6.08 bil­lion, LINK exchanged hands at $6.10 as of 19 Novem­ber. Fur­ther­more, as per data from Coin­Mar­ket­Cap, the asset’s price had declined by 2% between 18 and 19 Novem­ber. With­in the same peri­od, trad­ing vol­ume was also down by 27%. As of 20 Novem­ber, LINK stood at a price of $6.21 and trad­ed 1.7% high­er in the last 24 hours.

On the dai­ly chart of 19 Novem­ber, LINK sell­ers over­pow­ered the buy­ers in the mar­ket. At the time of writ­ing, the 20 Expo­nen­tial Mov­ing Aver­age (EMA) was posi­tioned below the 50 EMA (yel­low) line.

Fur­ther­more, lend­ing cre­dence to this posi­tion was LINK’s Direc­tion­al Move­ment Index (DMI). As of this writ­ing, LINK’s sell­ers’ strength (red) at 22.59 rest­ed above the buy­ers’ (green) at 12.48. 

The Aver­age Direc­tion­al Index (ADX) showed that buy­ers might find it dif­fi­cult to revoke the sell­ers’ strength in the short term. 

Fur­ther, key indi­ca­tors such as the Rel­a­tive Strength Index (RSI) and Mon­ey Flow Index (MFI) were posi­tioned in down­trends. Head­ed towards the over­sold posi­tion at press time, LINK had seen sig­nif­i­cant dis­tri­b­u­tion in the last week. At press time, the RSI was 40.82, while the MFI was 33.58.

Also sig­ni­fy­ing the decline in LINK buy­ing momen­tum was its Chaikin Mon­ey Flow (CMF). At the time of writ­ing, the dynam­ic line (green) of the CMF was posi­tioned below the cen­ter line in a down­trend at ‑0.12.

Source: Trad­ingView

Here comes the respite

Inter­est­ing­ly, as the alt’s price fell, on-chain data revealed that its exchange reserve had declined since the begin­ning of the month. With 101.99 mil­lion LINK tokens present on exchanges as  of 19 Novem­ber, data from Cryp­to­Quant showed that its exchange reserve dropped by 13% in the last 19 days.

Source: Cryp­to­Quant

Fur­ther, at the same time, its sup­ply out­side of exchanges rose by 1.2%, data from San­ti­ment showed.

Source: San­ti­ment

This indi­cat­ed that while LINK’s price might be down, there were few­er sell­ers than buy­ers in the market. 

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