Will Chainlink [LINK] continue its upward trajectory in the coming week?
- Chainlink registered unprecedented growth and data showed it was bullish
- LINK also received interest from the whales
- Metrics suggested a trend reversal was in the making
Chainlink’s [LINK] recent price action has been pretty impressive. As per CoinMarketCap, LINK registered 11% and over 25% daily and weekly gains, respectively. At press time, it was trading at $7.44, with a market capitalization of over $3.7 billion.
Read Chainlink’s [LINK] Price Prediction 2023-24
Furthermore, LINK was on the list of the top-5 bullish trends on the BTC pair, suggesting that its price might keep increasing in the coming days.
[Scan results – #KuCoin – 15m]
— DYOR.net (@DYORCryptoBot) November 29, 2022
Chainlink also received interest from the whales, as it was one of the most used smart contracts among the top 5000 ETH whales in the last 24 hours.
— WhaleStats (tracking crypto whales) (@WhaleStats) November 29, 2022
However, was everything working in the token’s favor? A look at LINK’s on-chain metrics shed some light on the current scenario.
Is a trend reversal imminent?
CryptoQuant’s data revealed a massive bearish signal as LINK’s stochastic was in an overbought position, opening an opportunity for a trend reversal soon. LINK’s exchange reserve was also on the rise; it hinted at a higher selling pressure.
According to Santiment, Chainlink‘s development activity decreased considerably over the past week, which was a negative signal for the network. After peaking on 25 November, LINK’s daily active addresses also registered a downtick. Nonetheless, LINK’s MVRV Ratio was up substantially, giving hope that the price surge might continue for a while.
Some promising updates for Chainlink
Surprisingly, while the metrics were mostly bearish, the market indicators were on the side of the buyers. For instance, LINK’s Relative Strength Index (RSI) registered an uptick and headed further up, indicating a continued price hike. The MACD also displayed a bullish crossover.
As per the Exponential Moving Average (EMA) Ribbon, the 20-day EMA was fast approaching the 55-day EMA, further increasing the chances of sustained growth.