Bitcoin’s rally had an impact on the rest of the market, with many alts posting surprising gains. While most of the top 20 alternatives were blinking green at press time, some did better than others. Chainlink was a case in point.
LINK had a good week
The price of the altcoin rose nearly 30% in just one week. In fact, it posted the best gains during this period, second only to MATIC. At press time, the altcoin was trading at $ 19.32. While it was on the daily charts in the green for most of the last week, LINK fell 1.81% within 24 hours at the time of going to press.
Can this be a problem for the crypto during its weekly price rally? Also, is LINK’s rally only being driven by the general upward move in the market or will the price hold once it goes down?
What do the metrics say?
A recent study of the metrics for LINK found that the supply of top addresses has increased significantly in view of the increasing price of the Alt, forming an almost parabolic structure. On the other hand, the percentage of what LINK is offering in smart contracts has also decreased over time. At the time of going to press this was 56.31%. These results paint a very neutral picture for the crypto asset.
ON Previous article had highlighted that LINK needed higher speed in order to trade at better levels. At the time of going to press, the old speed was oscillating on the one-day chart at 3.47, a level that is not a significant jump given the current rally.
While Chainlink’s MVRV ratio has seen recent highs, it may also mean that market value is higher than realized value. Therefore, pressure to sell (as seen at the time of going to press) can trigger minor price losses.
So will the price hold up?
A look at Chainlink’s price performance also indicated that trading volume spiked decently, making the July 26th green candle the highest green candle since May 27th. Additionally, the Relative Strength Index for LINK broke the resistance level it was struggling with at 48.4. At press time, the RSI for the altcoin was 59.8, with the same still moving on the daily chart.
Other factors that contributed to the increase
LINK’s price hike last week could also have been fueled by other factors such as PolyWhirl, which Chainlink VRF incorporated to secure and decentralize Token Burns. Another factor could be Crypto.com’s recent announcement that it is adding Chainlink price feeds to its Cronos testnet.
Although the metrics painted a neutral picture for LINK, outside news received reasonable interest in the alternative. Against this background, it is safe to say that nothing extraordinary is to be expected from the LINK price in the short term. Another small rally or dip wouldn’t be shocking either.