- Chainlink stochastic was in an oversold position
- The metrics also supported a change in trend, but concerns remain.
chain links [LINK] The latest performance did not quite align with investor interest, as its price has declined sharply over the past week. According to CoinMarketCap, LINK dropped by more than 13% and, at press time, was Commerce at $5.95 with a market cap of over $3 billion.
However, investors might have a reason to relax as CryptoQuant data revealed a major bullish signal for LINK. The data suggested the possibility of a price increase in the near future.
Read chain links [LINK] price prediction 2023-24
here’s the good news
Chainlink’s stochastic was in an oversold position, which could give investors hope for a trend reversal in the coming days. It’s more, LINKThe foreign exchange reserve was also declining, suggesting less selling pressure.
Active LINK addresses and the number of transactions were also increasing, which was another optimistic sign. Interestingly, not only the stochastic, but LINK’s relative strength index (RSI) and money flow index (MFI) were also quite close to the oversold zone.
This could further increase the chances of a northerly breakout.
The Santiment chart also pointed out some of the positive metrics, such as LINK’s funding rate. According to the chart, LINK’s Binance funding rate was consistently high, indicating increased interest from the derivatives market.
LINKThe exchange outflow also spiked several times in the past week, which could also be taken as a green signal.
While the metrics have started to align with investor interest, various developments in the Chainlink ecosystem could serve as the foundation for its next bull run. For example, FSN and Chainlink Labs established a channel partnership to accelerate NFT adoption.
Are your LINK shares flashing green? Check the earnings calculator
Lee Sang Seok, Executive Director of FSN, mentioned,
“Both FSN and Chainlink Labs are at the forefront of the NFT ecosystem, and we strongly believe that Chainlink Oracle’s services are instrumental in unlocking new forms of NFT utility, gaining user trust in Web3 projects, and enabling NFTs to take notice.” of its immense potential.
In a recent announcement, Chainlink also fixed which will work with Arbitrum to support the expansion of Layer 2 dApps in the DeFi space. Through the partnership, Arbitrum will be able to scale dApps running on its network and use Chainlink automation.
It’s more of a situation than meets the eye
Chainlink, in his daily summaries on Twitter, he has been mentioning all the integrations in his network. Although this suggested more efforts from the developers, Santiment’s graph revealed that LINKDevelopment activity has slowed down over the last week.
Furthermore, LINK’s network growth also followed a similar path and declined in the past seven days, which could postpone LINK’s next bull run.