In the last week, Chainlink reported a decline of 27 per cent, the biggest correction since its decline of 48 per cent over the second week of March 2020. While the entire sector was the focus of the new bear dump, the large altcoins have shown signs of recovery in the last few days.
For Chainlink, the scenario was quite different, but recent data indicated the LINK has come a long way in the last 6 months.
Chainlink Wallets rise from 183k to 400k
According to data from our network study, over the past 6 months, Chainlink has seen a wallet growth of 118.5 per cent, with hodlers keeping at least 1 token at their addresses. It was also announced that the gross on-chain value had hit a revived all-time high of $3.8 billion after the weekly on-chain assets had been registered. The average purchase size was around $30k.
Investors switching to Connect have regularly contributed 15k to 30k on a weekly basis.
After the recent crash, AMBCrypto also announced that Chainlink was seeking a buoyant impetus to cause a constructive turnaround, but over the past 24 hours, some of the on-chain metrics suggested caution.
Active Addresses, Number of Transfers hit monthly lows
In the course of 2020, Chainlink remained important to the sector as a result of its steady activity in the sector, in terms of growth and transactions. However, glassnode announced that the number of Chainlink Transfers had reached a monthly low of 663,857 over the past week.
Similarly, the amount of addresses collected was also poor, suggesting that users are actually facing a shortage of operations.
However, the decline in active addresses remains a big concern. Although common assets are still seeing declining active addresses during the price decline, recent depreciation has been more pronounced than ever, which is currently hindering LINK’s recovery.
As seen in the above map, LINK’s regular chart is currently forecasting the development of a bearish pennant, which could undergo further correction. Support at $22.70 should be sustained, or the market could see a place below $20 again in the future.
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