Chainlink: Can Bears Spark Another Rally After This Significant Milestone
Chainlink (LINK), while being the premier decentralized oracle network, has seen price swings in recent weeks, with positive and bearish tendencies affecting its performance. Despite this, the token has seen a 20% increase in the last 30 days.
However, the increase in value has not changed the perception of many investors about the coin. At the time of publication, Santiment reported a LINK-weighted sentiment of -0.781. The metric measures social discourse around assets, taking into account positive and negative sentiments.
Since the weighted emotions are negative, it implies that the overall vibrations that surround LINK are not necessarily positive. Despite the generally poor outlook, LINK was able to jump to $7.61 in mid-February. Is it possible that December’s price action will repeat itself?
Based on technical indications, the On-Balance-Volume (OBV) was 233.86 million. To analyze price projections, this indicator measures buying and selling pressure based on daily volume.
LINK OBV closed higher at the time of writing, as the price continues to climb. As the two are making higher peaks and troughs, LINK will likely try to sustain its rally.
The daily Moving Average Convergence Divergence (MACD) chart shows that bulls and bears are struggling to control momentum. Blue and orange dynamic lines around the same point produce this result.
Furthermore, Chaikin Money Flow (CMF) has emerged from negative territory, peaking at 0.06. When CMF falls below zero, it indicates that the flow of money has been obstructed. However, when it crosses above, it implies a steady flow of liquidity into the asset.
For LINK, CMF crossed the zero line from below, indicating that it may continue to advance. However, since the indicator is less than 0.5, traders should be wary of false signals.
According to on-chain statistics, LINK is now discounted based on Network Value to Volume (NVT) signals. Historically, low NVT signals have served as opportunities to stockpile. They are often counted as an asset base. As a result, LINK’s current state may present a buying opportunity to long term holders.
