Is Chainlink Price Correction Done?

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As a seasoned crypto investor with a few battle scars from past market turbulences etched into my digital portfolio, I find myself cautiously optimistic about Chainlink (LINK). The recent downtrend, reminiscent of Black Monday’s chaos, has left many investors bruised but not broken. However, the latest blockchain data suggests that LINK might be on the mend.

After a turbulent weekend of selling and a Monday that resembled the 2020 “Black Swan” event (known as Black Monday), the price of Chainlink temporarily halted its downward trend.

Has Chainlink Price Bottomed?

As a crypto investor, I’ve noticed an intriguing trend emerging from the latest blockchain data provided by IntoTheBlock – a growing number of new and active addresses on the Chainlink network are being generated. This could indicate increased interest or activity within this particular network, which might be worth exploring further.

In just two days, over 1,100 additional addresses connected to the network each day, with that number growing from 622 on Thursday to 1,744 on Friday. Consequently, the total active addresses rose to around 3,800 from about 2,500 during this timeframe.

Expanding the number of unique addresses implies an increasing user engagement, which could boost interest, demand, and value. This trend is often indicative of network activity. A sudden spike in active addresses without a parallel growth in new ones might hint at short-term speculation, possibly causing price fluctuations. In simpler terms, more users (new addresses) joining the network suggests long-term interest, while high usage (active addresses) without significant user growth could mean short-term market activity affecting prices.

Nevertheless, a sustained rise in both metrics, like in Chainlink’s case, signifies robust network growth and a healthy outlook for LINK price.

Is Chainlink Price Correction Done?

Previously predicted prices for LINK suggested that its volatile nature, shared by Bitcoin and other altcoins, resulted in a tight squeeze without room for growth. This predicament led to an intense buildup of pressure from above, causing LINK to fall beneath key support levels such as the upper dotted trend line, $12, and $10 zones.

In summary, the overextended Relative Strength Index (RSI) currently leans towards selling, but it also hints at a possible change in direction. If the main support at $8 remains strong, traders might seize the chance to buy at a dip.

It seems likely that things will go well for Chainlink, considering its increased network activity. As the price of LINK moves back above $10 (which acts both as support and resistance), we can expect more investors to join this trend. Once it surpasses this crucial level, traders will focus on reaching $14 and $18 as their next potential profit points.

Is Chainlink Price Correction Done?

As an analyst, I find myself cautiously monitoring Chainlink’s price movement due to the potential implications of losing the immediate $8 support. A recent development, known as two “death crosses,” has occurred – a situation where a short-term moving average (the 20-day Exponential Moving Average) has dropped below not one but two longer-term moving averages (the 50-day and the 100-day). This could potentially weaken the bullish momentum, making it a challenging phase for optimistic investors.

The pessimistic view towards Chainlink, combined with the futures market liquidations exceeding $5 million, strongly supports a temporary bearish prediction for Chainlink. Consequently, it’s crucial for traders to keep an eye on LINK‘s price movements around $8 to prevent being caught off guard by potential drops down to $6.

The cost of Chainlink remains above its $8 support level, with liquidations exceeding $5 million. Yet, an increase in network activity suggests there might be an upcoming recovery.

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2024-08-05 22:10