Chainlink (LINK) Price Action: A Closer Look
Chainlink (LINK) has been experiencing a bit of a rough patch recently, dropping 22% from its recent highs. This decline has some investors feeling a bit uneasy, especially with concerning on-chain data.
What’s the deal with Chainlink’s network activity?
Santiment, a platform that analyzes on-chain data, reports a price-Daily Active Addresses (DAA) divergence of -56.35%. This means that while the price of LINK is going down, the number of active addresses (users) on the network is decreasing too. This is a red flag for many analysts, as it signals a lack of user engagement and support for the price.
What does this mean for the future of LINK?
It’s not all doom and gloom for LINK, though. The recent bounce back after briefly touching $9.84 suggests some demand at this level. But if LINK can’t hold above the 4-hour 200 moving average (MA), which is currently at $10.80, things could get trickier.
If LINK falls below $9, it could signal a deeper correction. But if it can break above the 200 MA, it could be a sign of a shift in momentum and a potential push towards $11.50. The next few days will be crucial for determining the direction of LINK’s price.
Keep an eye on these key levels:
- Lower $9 mark (key demand level)
- 4-hour 200 MA (currently at $10.80)
- $11.50 (potential resistance level)
Ultimately, the future of LINK will depend on whether the network activity can pick up and support the price. Keep an eye on this metric, and stay informed about the latest developments.
