- LINK’s price indicators were in a solid position as bulls dominated the market.
- LINK’s long/short ratio could indicate a move in the opposite direction in the coming days.
Chain link [LINK], was not showing any signs of weakness at the time of writing as it traded at $8.18 according to CoinMarketCap. Moreover, the altcoin traded with a massive increase of almost 18% in the last seven days and 16% in the last 24 hours.
LINK holders had a lot more to look forward to as this latest update indicated that LINK had no intention of stopping. On July 20, data intelligence platform Santiment tweeted this about the condition of LINK.
#Chain link has recently seen an increase in whale transactions and overall trade volume. Greater market involvement would be a welcome sight for patients $LINK traders watching the prices remain flat. Check out our latest asset insight.
https://t.co/gdX4fsJkGB pic.twitter.com/EaJSDbDR7i
— Santiment (@santimentfeed) July 20, 2023
Is your wallet green? Check out the Chainlink Profit Calculator
According to the tweet, the total trading volume of LINK and whale trades has increased significantly in recent days. In addition, as reported by AMBCrypto, the balance of addresses with between 0 and 1 million LINK has increased significantly.
This was a clear indication that investors were responsible for LINK’s continued rally.
Is correction on the agenda?
Taking into account the daily chart of LINK, it could be seen that LINK was in a strong position. At the time of writing, the Relative Strength Index (RSI) was moving into overbought territory at 72.11. Given the position of the RSI, a slight trend reversal could be in the offing.
In addition, LINK’s Moving Average Convergence Divergence (MACD) also showed the strength of the sustained bullish wave. The MACD made a bullish crossover exactly one month ago on June 20 and crossed above the zero line on June 30. The MACD has been moving above the zero line ever since.
The Awesome Oscillator (AO) was also a sign of LINK’s power.
Source: TradingView
Despite the indicators being in full swing, LINK’s stats didn’t exactly scream rally. According to Santiment’s chart, LINK’s weighted sentiment reached its highest peak of the past month on July 17. However, on July 18, weighted sentiment fell at the same intensity. So this indicates declining investor sentiment towards the altcoin.
In addition, LINK’s social dominance saw its third-highest peak on July 17 in the past 30 days. However, his social dominance also witnessed constant ups and downs, indicating some social indecisiveness. While LINK’s volume peaked at 3.37 billion on July 20, the volume fell to 1.22 billion at press time.
Read Chainlinks [LINK] Price forecast 2023-2024
The press-time figure of 1.22 billion was after a slight recovery. The recovery could be a sign that retail investors jumped on the LINK bandwagon.
Source: Sentiment
Things can get tricky
When considering LINK’s 24-hour long/short ratio, it indicated a move in favor of shortholders at the time of writing. At the time of writing, long positions captured 50.76% of the market, while short positions captured 49.24%. The increasing dominance of short positions could necessitate a price correction as selling pressure would outweigh buying pressure and could leave investors in a vulnerable position.
Source: mint glass
