Chain Link: Positive signal for Link but may be delayed
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LINK investors are still biting their fingers almost a week after a 50% drop from early September levels. The cryptocurrency remains stuck near its current monthly lows despite positive developments that may have occurred. can contribute to healthy long-term growth.
LINK price prediction
Chainlink application is extended
Chainlink has revealed some recent positive developments but they have had no impact on LINK's price action so far. The network recently revealed that it has secured its place in providing services to the cargo and marine industries. This development highlights the expansion of its services into several key industry pillars through the Ontonomi parametric insurance platform.
No impact on the price of LINK
This development means that Chainlink can contribute to greater efficiency in the global logistics sector. But will this be enough to contribute to creating more demand? A look at the supply distribution of LINK shows that the current selling pressure is due to whale selling.
LINK addresses holding over 10 million LINKs control 54.61% of the total circulating supply, at press time. The same portfolio of whales registered flows over the past two days, where LINK's price action dropped around 4%.
Whales holding between 10,000 and 100,000 LINKs also contributed to the selling pressure. The downside would be higher if it weren't for another type of large whale accumulating.
Addresses holding between 100,000 and 10 million coins have seen their balances increase significantly over the past two days. As a result, the ongoing tug-of-war has limited LINK in the current range.
LINK's 7-day MVRV rate has decreased over the past two days along with the price drop, as well as selling pressure from top addresses.
However, trading volume figures have seen a massive spike in the past 24 hours at press time.
Interestingly, the LINK-weighted sentiment index has continued to rise again over the past two days. This is a confirmation that investor sentiment has improved since late and this may be related to the current price level.
LINK was trading at $6,829 at press time after failing to break above its 50-day moving average.
LINK bears have beaten the bullish attempts observed earlier this week. This result occurred after the RSI failed to cross the 50% level.
Investors should also note that the RSI has continued to show relative weakness since early October as selling pressure continues to abate any recovery attempt.
Link may continue down
There is still a significant probability of a price drop despite recent observations. However, the price has increased over the past 24 hours at press time.
This shows that the current short-term support range at $6.6 is still holding. In other words, traders can still take advantage of the zigzag price pattern for some short-term gains.
Oct 20, 2022