- Chainlink’s adoption rate witnesses a rise indicating that new users were flocking to the chain
- However, LINK’s performance on the price front was seen taking an unfavorable route
As the cryptocurrency market deals with the uncertainty that surrounds the FOMC meeting on 25/26 July, Chainlink [LINK] couldn’t be less bothered. This was because, at the time of writing, LINK exchanged hands 6.56% higher over the last seven days. Although its price of $7.47 stood after a 1.33% drop over the last 24 hours.
How much are 1,10,100 LINKs worth today?
However, LINK could witness some favorable action over the next few days considering this latest update. As per a tweet from IntoTheBlock, LINK’s New Adoption Rate witnessed a rise.
New Adoption Rate has been on the rise of #ChainLink.
This metric shows the activity share of new addresses out of the total activity. An increasing value suggests new users and increasing adoption?https://t.co/3nznGS2KGa$LINK pic.twitter.com/R1lIrYTciO— IntoTheBlock (@intotheblock) July 25, 2023
The above-mentioned update was a strong indication of new users and increasing adoption. However, did all of LINK’s metrics align with this development?
A conflict in the works
Despite the nature of the aforementioned development, LINK’s exchange netflow presented an alternate reality. As of 25 July, LINK’s exchange netflow volume stood at 110,830. This figure indicated that inflows dominated the outflows at press time.
Note that when inflows are higher than outflows, investors and traders could be preparing to sell their holdings.
Source: Glassnode
Furthermore, as per data from Santiment’s chart, LINK’s social dominance (purple) mirrored the exchange netflow’s concerning sentiment. This was because as of 25 July, the social dominance stood at 0.757% after some of its highest peaks of the last three months in July.
However, LINK’s development activity (red) showed an impressive trend considering its massive plummet at the beginning of July. At the time of writing, the altcoin’s development activity stood at 43.43. The recovery in development activity indicated that LINK developers significantly contributed to the chain to bring out this change in the metric.
Additionally, LINK’s weighted sentiment (yellow) didn’t exactly show any drastic changes in its trend. This indicated that holders had a very neutral perspective on the ongoing standing of LINK.
Source: Santiment
Bears could be on their way
At press time, data from TradingView indicated that LINK was exchanging hands at 1.42% lower than its opening price of the day. Additionally, LINK’s price chart flashed red which could be an indication of some bear-inviting activity.
LINK’s Relative Strength Index (RSI), although above the neutral line, moved in a downward direction. This could be a strong indication that selling pressure caught up with LINK. Furthermore, the Money Flow Index (MFI) also stood at 70.56 and moved in tandem with the RSI.
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A look at LINK’s Moving Average Convergence Divergence (MACD) too didn’t favor the bulls. At press time, the signal line (red) was seen moving toward the MACD line (blue). Although at the time of writing, a bearish crossover hadn’t taken place, the presence of constant selling pressure would make that a reality in the coming days.
Source: TradingView
It is also important to note the impact of the FOMC’s decision on the cryptocurrency market as a whole. Investors are thus, advised to exercise caution.
