Is Chainlink Price Correction Done?

Chainlink price slowed down the downtrend after a gruesome weekend sell-off and a bearish Monday that mirrored 2020’s black swan event, commonly referred to as Black Monday.

Has Chainlink Price Bottomed?

The latest blockchain data, presented by IntoTheBlock, points to an increasing number of newly created and active addresses on the Chainlink network.

Based on the metric, more than 1,100 new addresses joined the network daily by Friday from only 622 on Thursday. Subsequently, active addresses increased to approximately 3,800 from roughly 2,500 during the same period.

Increasing new addresses suggests growing user interest, potentially driving demand and price appreciation. Similarly, active addresses refer to network usage. A surge in active addresses without a corresponding increase in new addresses might signal short-term speculation, potentially leading to price volatility.

Nevertheless, a sustained rise in both metrics, like in Chainlink’s case, signifies robust network growth and a healthy outlook for LINK price.

A previous LINK price prediction outlines that due to the volatile nature of cryptocurrencies, Bitcoin, LINK, and other altcoins found themselves cornered with no breathing space to the upside. This situation triggered a massive overhead pressure surge, with LINK plunging below crucial support levels, including the upper dotted trend line, $12, and $10 areas.

On the one hand, an oversold Relative Strength Index (RSI) continued to favor sellers, while on the other, it signals a potential trend reversal. Should the primary support at $8 hold, traders will turn to buy-the-dip opportunities.

A bullish outcome is most likely, especially with Chainlink experiencing a spike in network activity. As the LINK price reclaims support/resistance at $10, more people are expected to jump onto the trend. Above this critical level, traders will aim for $14 and $18 as the next profit targets.

Losing the short-term $8 support will further destabilize Chainlink price. Two death crosses established after one short-term moving average (the 20-day EMA) crossed below two longer-term moving averages (the 50-day and the 100-day EMA) could somewhat play out against the bulls.

This bearish outlook, in conjunction with the liquidations in the futures market surpassing $5 million, underscores Chainlink’s short-term bearish thesis. Therefore, it is essential for traders to watch for LINK’s behaviour around $8 to avoid sudden traps to $6.

Chainlink price sits above $8 support while liquidations surge, surpassing $5M. However, the noticeable spike in network activity hints at a possible recovery.

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John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.