Chainlink: Indicators reveal this about LINK’s state and it’s not pretty
- LINK’s price action gave a contradictory image with some indicators rooting for the bulls and others for the bears
- LINK’s short-term holders dominated the market at the time of writing
While most cryptocurrencies were struggling to stay afloat and maintain their break even, Chainlink [LINK] had a somewhat satisfactory week. As per data from CoinMarketCap, LINK was exchanging hands at $6.25 which was 6.45% higher over the last seven days.
Read Chainlink’s [LINK] Price Prediction 2023-24
To add to the aforementioned sentiment, Chainlink also posted an update on X (formerly known as Twitter) about its Price Feed. As per the update, Chainlink’s Price Feed enabled more than $8.4 trillion in transaction value.
Furthermore, the solution also delivered more than 10 billion high-quality data points on-chain.
Having enabled $8.4T+ in transaction value and delivered 10B+ high-quality data points on-chain, #Chainlink Price Feeds are the battle-tested, industry-standard market data solution.
Three reasons why Price Feeds underpin the DeFi economy ⬇️ pic.twitter.com/be6J8paKcI
— Chainlink (@chainlink) September 8, 2023
This was a significant development for the Chainlink network. However, the scenario on the price front seemed a little shaky. LINK’s price was 1.99% lower than its opening price for the day. Furthermore, the Relative Strength Index (RSI) also showed some bearish action.
Although LINK’s RSI managed to touch the 50 mark, at the time of writing, it was seen moving toward the oversold region. This indicated that selling pressure had kicked in and could continue over the next few days.
However, contrary to the RSI, LINK’s Moving Average Convergence Divergence (MACD) still displayed a bullish crossover albeit below the zero line. Thus, the MACD stood in favor of LINK’s price. What was also noteworthy was that the Awesome Oscillator (AO) also flashed green but below the zero line.
In the event that the sellers gain further control, the bullish crossover may turn into a bearish crossover. Additionally, considering the position of the RSI, that did seem like a possibility in the near future.
This is what the metrics say…
A look at LINK’s metrics indicated an alternate scenario to the one that was seen on the price front. LINK’s mean coin age witnessed a significant rise over the last three months. This was a clear indication that LINK holders were holding onto their tokens despite the price changes.
Is your portfolio green? Check out the LINK Profit Calculator
Additionally, although LINK’s weighted sentiment did witness a slight at the beginning of September, it did manage to recover. This meant that despite troubles, LINK holders felt optimistic about holding the altcoin.
The rising social dominance too portrayed LINK’s strong standing on the social front. However, the action on the price front did manage to leave an impact on LINK’s long/short ratio.
At the time of writing, the traders who held short positions outnumbered those who held long positions. This wasn’t a great sign for the price of LINK as short traders would contribute to the selling pressure in the event that LINK shows some recovery.