The development activity and the social volume of LINK have recently dropped, indicating reduced interest in the coin. However, its foreign exchange reserve and net exchange flows decreased, a bullish signal that may point to low selling pressure.
The developers behind Chainlink (LINK) recently made the network gain traction after sharing some new promising improvements. The blockchain exceeded the USD 6.18 trillion transaction value and the 4.2 billion data points delivered on-chain.
However, those developments did not influence the price of the LINK token, which traded 4% lower than last week. Its market value reached around USD 7.51, while its market capitalization was above USD 3.68 billion.
Overall on-chain metrics about the price of LINK looked somewhat negative, with several suggesting a bearish trend in the short term.
The Recent Activity on the Chainlink Network Suggests Further Drops
According to market intelligence platform Santiment, LINK may face some difficulties in the coming days.
The trading volume of LINK plummeted after it had risen in late September. The development activity on the network has also dropped over the last few days, a usual red flag for any blockchain.
In addition, the social volume of LINK also depreciated, compared to last week, a negative sign indicating reduced interest in it. However, the Market Value by Realized Value (MVRV) ratio indicator rebounded shortly after, which might help the value of the coin rise.
The Price of LINK May Rise in the Short Term
According to data from CryptoQuant, the foreign exchange reserve of LINK fell, a bullish signal pointing to low selling pressure. Its net exchange flows also dropped below the 7-day average, representing another green flag for the coin.
However, the LINK daily chart showed that some market indicators suggested better days while others pointed to a drop. For example, the 20-day exponential moving average (EMA) was above the 55-day EMA, indicating the advantage of buyers in the market.
According to Bollinger Bands, the price of LINK was in a critical area and might turn volatile in the short term. However, the Moving Average Convergence/Divergence (MACD) indicator revealed the bears gained an advantage when they struggled to register a bearish crossing.
The Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) were also in neutral positions. That indicated that the market might drive the price of LINK higher or lower in the coming days.
Meanwhile, LINK is trading at around USD 7.16 and has accumulated a 2.4% loss over the last 24 hours. While its daily trading volume is above USD 336.80 million, its market capitalization is about USD 3.52 billion, according to CoinGecko.
Investors should research LINK or any other asset before buying it to know its all-time high, behavior, and possible future price. That will allow them to find the most convenient investment opportunity to minimize the risk of losing their money. It is a matter of time before seeing how the market influences the value of that growing altcoin.
By Alexander Salazar
