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LINK: Do the on-chain metrics line up with the recent bullish price action?

2min Read

The announcement of LINK’s Staking v0.2 may have given the altcoin a bullish edge. However, investors and traders may have to wait for a move above $7.87 to invalidate any bearish bias.

Decoding Chainlink's on-chain metrics- do they line up with the recent bullish price action?

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Chainlink data offered different conclusions from price action and on-chain metrics
  • The BTC resistance at $30k could play a vital role in Chainlink’s reaction to its $8 resistance zone

Chainlink [LINK] saw the launch of Chainlink Staking v0.1 last December. On 19 October the network announced its plans to roll out Staking v0.2, which has advantages over the previous version such as dynamic rewards, better security, and more staking flexibility.


Read Chainlink’s [LINK] Price Prediction 2023-24


On the price front too, LINK was performing bullishly. A recent report by AMBCrypto detailed that the $7-$7.1 region was lined with sizeable buy orders and that LINK could rally from there. This analysis was vindicated, with the buyers forcing a rally from $7.21.

The bullish breaker block was defended yet again this week

Decoding Chainlink's on-chain metrics- do they line up with the recent bullish price action?

Source: LINK/USDT on TradingView

The market structure of LINK on the one-day chart was bearish. However, the past 24 hours saw LINK register gains that measured just over 5%. A move above $7.83 would be needed to flip the structure bullishly.

On the other hand, the Relative Strength Index (RSI) continued to stay above neutral 50 and signaled that the momentum had not flipped bearishly yet. Additionally, the On-Balance Volume (OBV) also climbed higher in recent weeks to reflect strong buying volume.

To the north, the local highs at $8.27 sat in the same region where an H12 bearish order block (red box) occurred back in July. Hence a move past the $7.65 local resistance would likely falter or at least slow down in the $8-$8.4 resistance zone.

On-chain metrics suggested LINK accumulation, but only for a brief period

Decoding Chainlink's on-chain metrics- do they line up with the recent bullish price action?

Source: Santiment

On 13 October, Santiment data revealed that 4 million LINK tokens flowed out of exchanges. The days before this saw a rise in the Mean Coin Age. However, the metric was already trending downward during this outflow. They were at odds, and the inference was that the outflow likely saw additional movement on the network.


Realistic or not, here’s LINK’s market cap in BTC’s terms


The positive Market Value to Realized Value (MVRV) ratio raised small concerns that profit-taking activity could increase if LINK prices climb further. The price action and the metrics were not in agreement, and with Bitcoin [BTC] near the $30k resistance, LINK bulls could defend their profits if the prices approach the $8 resistance.

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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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