Chainlink (LINK) witnessed massive attention and hype over the past week, catalyzing an impressive bullish run. Unfortunately, FUD’s return within the marketplace hindered potential surges, welcoming another downside move for the alt.
LINK’s subsequent downside had the alternative token losing 18% from $8.12 last week’s peak to the low this week at $6.51. Chainlink recorded a 5.21% surge to press time value areas of $7.03, though the current level might have more than what’s visible. Chainlink’s price action is squeezing into a constricted support and resistance range.
Breaching the Wedge
Chainlink’s wedge setup could offer some indications of near-term expectations. The alt briefly overcame the resistance level before the retracement, confirming massive momentum. Also, the lower range showcased similar observations after LINK bears surrendered their push towards the support level.
Bullish price actions within the past day indicated a brief pivot in the Relative Strength Index. While such an observation reflects a bullish stance, it doesn’t necessarily guarantee such outcomes. Chainlink bears could still reclaim dominance to catalyze a structured break under the support.
Perhaps the token’s on-chain data will offer increased clarity to LINK investors. Let us check some considerations that market players should check when interacting with Chainlink. The asset’s 90-day dormant circulation index witnessed its last massive surge around the mid-September sessions.
The same metric shows a relatively decreased activity since then. That shows most LINK coins privately didn’t move. Meanwhile, that signals long-term investors holding their LINK coins. The dormancy metric reading remains favorable for Chainlink bulls from a supply standpoint.
It shows the number of LINK coins on exchanges remained lower. Thus, a demand surge could catalyze a massive uptick. In the ‘supply’ context, leading wallets have accumulated over the past 30 days. The mentioned metric shows whales have scooped LINK.
Despite that, the asset’s price action attained a minor gain from its current yearly low. That could signal that most leading Chainlink holders trust the token hovers at the bottom of the ongoing bear market. LINK’s 24hr on-chain transfer metric remains among the few indexes revealing a relatively ugly picture.
Decreased profitability from 24hr on-chain transfer could seem bearish. One could perceive it as a consequence of the bearish prices of an indication of FOMO that plagued the space within the past few days. Nevertheless, investors will likely duplicate when most market players explore the red. However, LINK has room for more upside potential.
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