Chainlink’s cryptocurrency LINK received a lot of hype and attention last week, which led to a strong rally to the upside. Unfortunately, the return of R&D to the market capped a potential upside trend and instead led to another sell-off.
LINK’s post selling pressure led to an 18% retracement from last week’s high of $8.14 to this week’s low of $6.51. It managed to climb 5.21% to press time at $7.03, but there could be more to its current level than meets the eye. LINK price action is currently compressing into a tight support and resistance area.
break the wedge
LINK’s wedge pattern can provide some ideas of what to expect in the short term. It briefly breached the resistance line before the correction, indicating strong momentum. The lower range also leads to a similar note after the bears failed to push all the way to the support line.
The bullish price action over the past 24 hours reflects a small pivot in the RSI. While this observation creates a bullish bias, it does not necessarily guarantee such an outcome. The bears on LINK may continue to regain their dominance and push for an orderly break below the support level.
On-chain LINK data may help provide clarity to investors. Here are some considerations that investors should consider. The 90-day comfort LINK trading scale hit its last major peak in mid-September.
The same measure indicates a relatively low activity since then. This means that most LINK tokens are not specifically transmitted. A sign that long-term buyers are still holding their LINK tokens.
Metric observation at rest is favorable for height speculators from a viewing perspective. He assures that the amount of LINK available on the exchanges is less, so an increase in demand may lead to a sharp rise. Speaking of the show, headlines have been accumulating over the past 30 days.
Together, the above metrics confirm that the top head or whales have accumulated LINK. Despite this, the price action only made a marginal gain from its current low in 2022.
This could be a sign that most of the major owners of LINK believe that it is currently in the lower zone of the current bear market.
The on-chain daily transactions metric from LINK is perhaps one of the few metrics that currently paints an unfavorable picture.
Low profitability from daily transactions in the series can appear bearish. One could interpret it as a result of the bearish price movement or the FOMO reversal that has prevailed in recent days.
But investors are more likely to double down on accumulation when most investors are in the red. However, there is always room for more potential downsides.