Journalist
Posted:
- Whale activity around LINK has declined.
- Market indicators have turned in favor of buyers in recent days.
Chain link [LINK] followed a bearish market trend as price action leveled off over the past week. But next week could be different as some of the key metrics looked bullish.
Realistic or not, here it is The market cap of LINK in terms of BTC
Supply on the exchanges has recently fallen in a pattern that has historically been followed by upward trends. Anyway, there is a catch in the story.
Chainlink has a lot to offer
According to CurrencyMarketCapLINK’s price was down more than 1% in the past seven days. At the time of writing, it was trading at $5.98 with a market cap of over $3.2 billion.
However, investors may witness higher volatility in the coming days. To that extent, Santiment’s recent tweet pointed to an interesting development.
🔗🫡 #Chain link has reached an important level that historically foreshadowed a price rally. Assuming #Bitcoin and the whole #crypto sector remains relatively stable, $LINK‘s drop in currency supply (currently only 15.5%) points to a #bullish divergence. https://t.co/2GnsaNRv0O pic.twitter.com/7X7b7p4hSr
— Santiment (@santimentfeed) August 31, 2023
According to the tweet, CLUTCH has reached an important level that historically foreshadowed a price rally. Supply of the token on the exchanges reached an all-time low, indicating that investors can expect a price increase in the coming days. Similar episodes took place in December 2022 and June 2023.
However, despite these promising updates, the whale activity surrounding the token has raised some concerns.
Crypto analyst ali_charts pointed out via a tweet on Aug. 31 that during the June price correction, whale transactions and their holdings rose. But the situation at the time of going to press was different.
On this occasion, whale trades fell while their holdings remained stable, which was not in the interest of investors.
#Chain link | Unlike the June $LINK price correction – where whale transactions and their holdings increased while prices fell – this time we see whale transactions decreasing while their holdings remain stable.
This is not good! If #CLUTCH breaks below the $5 support level, expect a… pic.twitter.com/1V6P0C2ylT
— Ali (@ali_charts) August 31, 2023
Here’s what investors can expect
Although whale activity suggested so CLUTCHWhile the company’s share price may not be moving up, some other metrics seemed bullish. For example, the token’s MVRV ratio has improved in recent days, which is a positive sign.
LINK’s network growth also remained high, meaning more new addresses were created to transfer the token.
In addition, Chainlink currency outflows were high, which meant that investors were increasingly hoping for a price increase. In addition, LINKs Open interest fell slightly as the price fell. A drop in the benchmark usually leads to a trend reversal.
Source: Sentiment
Read Chainlinks [LINK] Price Prediction 2023-24
Moreover, the token’s market indicators also suggested that the possibility of CLUTCH‘s price turned bullish and was high. Chainlink’s Relative Strength Index (RSI) and Money Flow Index (MFI) gained upward momentum and moved towards neutral.
The likelihood of a bullish crossover was also indicated by the token’s MACD, which hinted at the prospect of a price rally in the coming days.
Source: TradingView