LINK - Forgotten but not gone
Assets covered: Chainlink (LINK)
Metrics used: Price, Network Growth, Daily Active Addresses (DAA), MVRV 7D, Network Growth, Dev Activity
While L1s, Defi coins are seeing nice rallies all around, one of the OG coins been left in the shadows. Is something brewing?
Let's take a look.
LINK finally broke up (with good volume) to reclaim the $30 mark after retesting the $29 resistance region for the 3rd time. It's still trading above $30, so that's a good sign so far. But it'll be good to see it retest the resistance to turn it into support eventually for continuation upwards.
Prior to this price action, there was huge trading volume seen on the dip earlier this month where we saw over leveraged traders get wiped out market-wide. That was great as the market was getting overheated then.
LINK's MVRV 7D which measures the short-term profit/loss of holders is showing that we are in the danger zone, as all short-term holders are in the profit at the moment - Which could incentivise them to take some profits.
LINK's Network Growth been on a healthy trajectory since mid-July, establishing Higher Highs and Higher Lows. So far, so good, the bullish bias is there as long as there's no major deviation of Networth Growth vs Price.
Daily Active Addresses (DAA)
LINK's Daily Active Addresses bounced off the 3 month low in mid-July and have been gradually increasing since. This indicates that the network activity is healthy as DAA stablized and market participants start to come back in.
LINK's social volume been consistently dropping (not seeing higher highs) since the price bottomed out in mid-July. Price rallies still do see social volume spikes, but they eventually die out even as price attempts to retake key resistances.
It appears that the crowd's exhausted by the lacklustre performance of LINK when compared to L1 or other DeFi coins. From a sentiment perspective, this abandonment of LINK is a good one as the crowd/retail will only come back when it's too late.
LINK's Dev activity is looking pretty good so far as it continues to make its way back to the 3 month high. Interestingly, it seems that LINK's Price and Dev Activity follow one another rather closely.
Regardless, the LINK team have been busy and that's good to know as the market will eventually use this as a speculative event (for whatever they are rumoured to release).