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Chainlink’s new milestone – Will it benefit LINK?

2min Read

Even though the on-chain metrics were positive, Chainlink was not yet ready for a breakout.

Chainlink ranks second among ERC-20 tokens for development activity last month

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  • 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.

A post from Santiment on X highlighted this fact, with Chainlink ranking second on the chart. Status [SNT] ranked first, and Ethereum [ETH] stood third on the list.

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.

Chainlink ranks second among ERC-20 tokens for development activity last month

Source: Santiment

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

Chainlink ranks second among ERC-20 tokens for development activity last month

Source: LINK/USDT on TradingView

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.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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