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Assessing LINK’s sluggish performance on the back of Kwil update

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Assessing LINK's sluggish performance on the back of Kwil update
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  • Kwil joined Chainlink BUILD.
  • Though Chainlink’s NFT ecosystem witnessed growth, the metrics and market indicators were giving mixed signals. 

Chainlink [LINK] recently announced that Kwil, which is a protocol for designing, building, and deploying permissionless databases, had joined Chainlink BUILD. With Chainlink’s community reach and technical support, Kwil will be able to hasten the adoption of its decentralized database system. 

Kwil will profit significantly from BUILD, including access to and integration of Chainlink services, access to beta and alpha releases of new Chainlink products, and more.

However, this did not help LINK on the price front, as it registered a decline of over 3% in the last 24 hours. As per CoinMarketCap, at the time of writing, LINK was trading at $5.61 with a market capitalization of over $2.8 billion. 

Are your LINK holdings flashing green? Check the Profit Calculator

This went well for LINK

Despite LINK’s underperformance, Chainlink registered growth in its NFT ecosystem. Santiment’s data revealed that LINK’s total NFT trade count and total NFT trade volume in USD spiked twice in the last seven days. 

Source: Santiment

This growth can be attributed to the recent integrations that happened in Chainlink’s NFT space. Chainlink announced its integration with One Plant on 4 January, which might have played a role in its recent growth. 

Incidentally, not only the NFT space, but several other metrics were also in favor of a trend reversal for LINK in the coming days. For instance, LINK’s development activity shot up considerably, which was a positive development. LINK also maintained its demand in the derivatives market, as its Binance funding rate remained relatively high.

Nonetheless, as per CryptoQuant, LINK’s exchange reserve was increasing, which was bearish as it represented higher selling pressure. 

A 115.72x hike on the cards if LINK hits Bitcoin’s market cap?

Source: Santiment

What should investors expect? 

While certain metrics were positive, most market indications were negative. LINK’s Relative Strength Index (RSI) registered a downtick and was resting below the neutral mark, suggesting a bearish advantage in the market.

The On Balance Volume (OBV) was also relatively low, further increasing the chances of a continued downtrend. The MACD provided some relief as it displayed a bullish crossover, which somewhat indicated that the price might go up. 

Source: TradingView

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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