Chainlink’s new milestone – Will it benefit LINK?
- Chainlink noted a high development activity and other positive on-chain metrics
- Technical analysis showed that a dip toward the range lows was a likelihood
Chainlink [LINK] saw a significant boost to its credibility in investors’ eyes after the robust development activity in the last 30 days.
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— Santiment (@santimentfeed) January 11, 2024
Analysis of the price action of LINK showed that the $15 level proved to be a crucial resistance once again. The bulls suffered rejection on 11th January, forming a doji candlestick on the day.
The on-chain metrics showed Chainlink was healthy
The high development activity of the past month was not an anomaly. AMBCrypto looked at the same metric for the past six months and noted that the activity has been stable and relatively high.
This showed a committed dev team and should inspire confidence in long-term investors.
The 90-day MVRV ratio fell below zero on 6 January but has since crept higher. This came at a time when LINK did not embark on a higher timeframe downtrend. This suggested optimism, as selling pressure from profit-takers would likely be low going forward.
The token is not wildly overvalued like it was back in late October. Additionally, the mean coin age has also been trending upward over the past month.
This pointed toward a network-wide accumulation. The weighted sentiment has been negative over the past ten days with sporadic positive spikes. This could change should LINK trend higher.
Discussing LINK’s HTF trend
The fall in MVRV and the rising mean coin age was a big positive for Chainlink investors. The one-day price chart above showed that the token traded within a range. The continuous accumulation since 16th December while prices floated from $17 to $13.1 was encouraging.
From a technical standpoint, LINK has a bearish market structure. On 11th January it faced resistance at the previous lower high of $15.6 and fell lower.
The RSI was at neutral 50 and showed that momentum favored neither buyers nor sellers. The mid-range resistance coincided with the $15 HTF resistance. Moreover, the OBV has trended slowly lower in the past month.
Read Chainlink’s [LINK] Price Prediction 2024-25
These observations showed that LINK is likely to fall toward $13 once more. Even though the on-chain metrics were positive, Chainlink was not yet ready for a breakout above the $16.6 range high.