- Chainlink’s stochastic was in an oversold position
- Statistics also supported a trend reversal, but concerns remain
Chain links [LINK] the latest performance hasn’t quite matched investor interest as the price fell significantly over the past week. According to CoinMarketCap, LINK was down more than 13% and was trading at $5.95 with a market cap of over $3 billion at the time of writing.
However, investors could have a reason to relax as CryptoQuant’s data revealed a major bullish signal for LINK. The data suggested the possibility of a price hike in the near future.
Read Chain links [LINK] Price prediction 2023-24
Here’s the good news
Chainlink’s stochastic was in an oversold position, which could give investors hope for a trend reversal in the coming days. Moreover, LINKThe bank’s currency reserve also declined, indicating lower selling pressure.
LINK’s active addresses and number of transactions also increased, which was another optimistic signal. Interestingly, not only the stochastic, but also the Relative Strength Index (RSI) and the Money Flow Index (MFI) of LINK were quite close to the oversold zone.
This could further increase the chance of an outbreak to the north.
Santiment’s chart also pointed out some of the positive metrics, such as LINK’s funding rate. According to the chart, LINK’s Binance funding rate has been consistently high, indicating increased interest from the derivatives market.
LINKThe outflow from the stock market also peaked quite a bit last week, which can also be seen as a green signal.
As the stats began to match investor interest, several developments in the Chainlink ecosystem could serve as the basis for the next bull run. For example, FSN and Chainlink Labs have established a channel partnership to accelerate NFT adoption.
Are your LINK holdings flashing green? Check the Profit calculator
Lee Sang Seok, CEO of FSN, called,
“Both FSN and Chainlink Labs are at the forefront of the NFT ecosystem, and we firmly believe that Chainlink Oracle services are critical to unlocking new forms of NFT tools, gaining user trust in Web3 projects, and enabling NFTs to to realize their enormous potential.”
In a recent announcement also Chainlink mention that it will partner with Arbitrum to support the expansion of layer 2 dApps in the DeFi space. The collaboration will allow Arbitrum to scale the dApps on its network and leverage Chainlink’s automation.
It’s more than meets the eye
Chain link, in his daily raids on Twitter, has mentioned all the integrations on his network. While this suggested increased developer effort, Santiment’s chart revealed just that LINK‘s development activity has fallen over the past week.
In addition, LINK’s network growth followed a similar trajectory and declined over the past seven days, which could delay LINK’s next bull run.