Here’s why the possibility of Chainlink reaching $30 cannot be ruled out.

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Until recently, the under $30 cluster included four top coins: DOT, ATOM, LINK, and UNI. The first two coins have rallied in recent days, breaking through the $30 barrier. In fact, at press time, they were trading at $35 and $33, respectively.

With Uniswap struggling recently, could Chainlink be the next alt to break into the DOT and ATOM leagues?

Analyzing the odds

The latter half of October hasn’t been kind to Chainlink in recent years. On the price chart, the alt registered horizontal movements in both 2019 and 2020.

In terms of this year, LINK broke below its ascending channel in September and has been consolidating since.

As a result, breaking the tradition and making progress in the coming days would be extremely difficult for the LINK.

To make matters worse, the token’s on-chain metrics appeared to be malnourished at the time of writing.

LINK’s trading volume, for starters, has been spending more time towards the downside of late. Last time this month, LINK’s volume revolved around the 2 billion range.

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However, the same remained stagnated in the 800 million to 1 billion range since the beginning of October. This clearly highlighted the withering interest of market participants.

Further, the active addresses have also been keeping up with the downtrend. On any blockchain, users interact with one another using their addresses and the current state of this metric outlines that Chainlink’s blockchain isn’t that active.

As anticipated, the price DAA Divergence model also flashed a bearish sign at the time of writing. The aforementioned model, tracks down the relationship between the token’s price and age amount of daily active addresses interacting with the coin.

Source: Santiment

No revival of hope?

Well, looking at the shrivelling state of the aforementioned metrics, immediate recovery hopes look bleak. However, the state of the alt’s velocity seemed to be getting better at the time of writing. As per Glassnode’s chart, the same has been getting less turbulent with time.

More often than not, Chainlink’s rally on the price chart was accompanied by steady velocity. Thus, if this metric gets even more stable with time, one can expect LINK’s rally to commence.

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Further, the top 1% of the addresses continue to hold an ATH supply of over 85% and quite interestingly, the alt rallied whenever new highs were made.

As highlighted in a previous article, LINK’s NVT was in a pretty decent shape of late. Thus, fundamentals do have the potential to change the fate of Chainlink in the coming weeks and only when that happens, the alt would be able to cross the $30 psychological mark.

Source: Glassnode

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