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- Chainlink data yielded different conclusions than price action and on-chain metrics
- The $30,000 BTC Resistance Could Play a Crucial Role in Chainlink’s Response to its $8 Resistance Zone
Chain link [LINK] saw the launch of Chainlink Staking v0.1 last December. On October 19, the network announced are planning to roll out Staking v0.2, which has advantages over the previous version such as dynamic rewards, better security and more flexibility in deployment.
Read Chainlink’s [LINK] Price forecast 2023-24
LINK also performed bullishly on the price front. A recent report from AMBCrypto indicates that the $7-$7.1 region was filled with significant buying orders and that LINK could recover from there. This analysis was confirmed, with buyers forcing a rally from $7.21.
The bullish breaker block was defended again this week
Source: LINK/USDT on TradingView
LINK’s market structure on the one-day chart was bearish. However, in the past 24 hours, LINK posted gains of just over 5%. A move above $7.83 would be needed to turn the structure bullish.
On the other hand, the Relative Strength Index (RSI) continued to hold above the neutral 50, indicating that momentum had not yet turned bearish. Moreover, On-Balance Volume (OBV) also climbed higher in recent weeks due to strong buying volume.
To the north, local highs at $8.27 were in the same region that saw a bearish order block (red box) in the second half of the 20th century in July. Therefore, a move past the local resistance at $7.65 would likely falter or at least slow down at the $8-$8.4 resistance zone.
On-chain statistics indicated the accumulation of LINK, but only for a short period of time
Source: Santiment
On October 13, data from Santiment revealed that 4 million LINK tokens flowed out of exchanges. The days before that there was an increase in the Mean Coin Age. However, during this outflow the benchmark was already showing a downward trend. They disagreed, and the conclusion was that the outflow probably caused additional movement on the network.
Realistic or not, here is LINK’s market cap in BTC terms
The positive market value to realized value (MVRV) ratio raised minor concerns that profit-taking activity could increase if LINK prices rise further. The price action and metrics were not in line, and neither was Bitcoin [BTC] near the $30,000 resistance, LINK bulls could defend their gains as prices approach the $8 resistance.