- The LINK accumulation did not slow down and the price DAA divergence suggested a new uptick.
- Despite the price increase, an opportunity presented itself.
In the past seven days, Chain link [LINK] has gained 18.58% according to CoinMarketCap. However, there were signs that this hike may not mean LINK has made it to the top. And this inference was not just speculation. Rather, it is based on the actions of LINK holders and trading activities.
Read Chain links [LINK] Price prediction 2023-2024
For starters, LINK’s supply distribution among the retail cohort and whales has been aligned since June 10. Before that date, the balance of the addresses of most holders fell closer to the bottom.
No delay in the revival
However, Santiment’s data showed that the balance of addresses with between 0 and 1 million LINKs has increased incredibly. This accumulation could certainly have played a role in the price increase of the token.
But at the same time, the accumulation rate did not slow down. And in most cases, this indicates a widespread belief that LINK is headed for another ascent.
Source: Sentiment
A look at the adjusted price to Daily Active Addresses (DAA) divergence showed that as price increased, active addresses decreased. This is a clear indication, when referenced to history, that the Chainlink network could be make up for a new revival.
Source: Sentiment
With regard to development activities, Chainlink has been incredibly dominant. While this could serve as a bullish signal, the increase could also be related to recent developments cross chain update.
Basically, Chainlink developed the Cross-Chain Interporeabilty Protocol (CCIP) to promote seamless communication between networks while providing access to traditional financial projects.
Similar to the development activity, the number of active contributors from the developers has also increased since the first week of July. This increase means there were plenty of developers committed to improving the Chainlink network through public GitHub repositories.
Source: Sentiment
Time to make the most of it?
At the time of writing, LINK’s volume had passed 1 billion. This suggests that there was a higher number of transactions with the token.
The volume increase also laid the foundation grounds for another increase as LINK price also tracked in the same direction. However, traders may need to pay attention to the market value to realized value (MVRV) ratio.
At the time of going to press, LINK’s 90-day MVRV ratio was 14.94%. Usually, this metric indicates whether an asset is undervalued or overpriced. While measuring unrealized gains or losses, the MVRV ratio can also be used to identify market tops and bottoms.
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So if holders sell at the MVRV ratio at the time of writing, then realized gains would be well below double the average accumulation price.
Source: Sentiment
However, LINK cannot be said to be completely undervalued. But at the same time, the current ratio offers an opportunity to benefit from another upward trend.