Is Chainlink (LINK) Sliding To $9? On-Chain Metrics Expose Weak Network Activity

As a seasoned crypto investor with battle scars from numerous market cycles, I have learned to navigate the stormy seas of digital assets with caution and patience. The recent dip in Chainlink (LINK) has certainly raised eyebrows, but I remain cautiously optimistic.


Chainlink (LINK) is at a crucial level after a sharp 22% retrace from recent local highs, sparking concern among investors and analysts. The recent downturn is compounded by unsettling on-chain data that suggests Chainlink’s network activity may weaken, adding to the uncertainty surrounding the asset. This decline in activity, coupled with broader market volatility, has heightened fears of further losses. 

If the negative feelings about LINK continue, it’s probable that it will approach the next important floor near the lower $9 region. This level is crucial in predicting the asset’s immediate direction. Falling below could indicate further drops, whereas holding it off may pave the way for a rebound

Observers are keeping a close eye on these recent events, as they could significantly influence the trend of Chainlink’s price and the general market mood in the upcoming days

Chainlink Driven By Low Network Activity

Currently, Chainlink (LINK) is experiencing a notable surge in selling activity that’s not solely attributed to market conjecture. Reduced network usage is another key factor contributing to this persistent downtrend

Based on findings by Santiment, the difference between the daily active addresses (DAA) and Chainlink’s price is currently running at approximately 56.35% lower. This downward discrepancy indicates a possible disconnect between user activity and the price of Chainlink, which may signal potential issues ahead

Is Chainlink (LINK) Sliding To $9? On-Chain Metrics Expose Weak Network Activity

As a researcher, I find the DAA (Daily Active Addresses) metric to be crucial in deciphering whether network activity is driving price fluctuations in cryptocurrencies. When I observe an uptick in active addresses, which reflect user engagement on the blockchain, alongside rising prices, it suggests robust underlying demand. This could imply that the cryptocurrency is primed for further growth. Conversely, if network activity escalates while prices are falling, it usually signals a buying opportunity, hinting that the market might soon recover and reverse its current trend

However, the current decrease in DAA for Chainlink paints a less optimistic picture. This drop indicates that user engagement isn’t supporting recent price action, a typically bearish factor. An increase in network activity is essential for LINK to see any meaningful consolidation and potential recovery.

If there’s no matching increase in DAA (Daily Active Addresses), the cryptocurrency might find it challenging to escape its present downward trend. This metric is being closely watched by investors because persistently decreasing network activity could exert additional bearish influence on Chainlink’s price, potentially driving it towards lower resistance levels

LINK’s $9 Lifeline

At the moment, Chainlink (LINK) is being traded at approximately $10.24, having dipped slightly below its August 16 low of $9.92. However, LINK soon rebounded after touching $9.84, demonstrating strong demand at this price point. Nevertheless, it’s worth noting that LINK is still below the 4-hour 200 moving average (MA), which stands at $10.80 and serves as a significant technical benchmark

Experts view this Moving Average (MA) as a crucial point, and if LINK manages to surpass it, it might signal a change in the trend’s direction, possibly propelling LINK towards the next potential resistance at approximately $11.50

Is Chainlink (LINK) Sliding To $9? On-Chain Metrics Expose Weak Network Activity

On the other hand, if LINK continues to lose its current position and falls even more, a larger correction might push the price down to levels below $9. This would suggest that the bearish pressure is still strong, with traders and investors keeping a close eye on the price movements. Whether LINK manages to regain its 200 Moving Average or sink below its recent lows will play a key role in predicting its next major move

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2024-09-04 22:05