LINK - Where are we now?
Assets covered: Chainlink (LINK)
Metrics used: Price, Trading Volume, Exchange Inflow, MVRV, Daily Active Deposits
While we did get a good bounce from the $17.50 lows to hit almost a 2x gain at $35 levels, LINK is now at a point of resistance and will have to stay above the support area for another chance to break above the resistance trendline.
Things will look really bad if we break support and go below the previous low, making yet another lower low to further confirms a bear trend.
Right now, it's anyone's guess.
The recent bottom saw large clusters of Daily Active Deposits (DAD) spikes, which may indicate that a good amount of people have capitulated.
Besides the large number of people depositing, Exchange Inflow is also showing that a significant amount of LINK was deposited near the recent bottom.
In the past one year, significant inflows of LINK near bottoms have preceded a price uptrend. Could we be seeing a similar outcome?
MVRV 30D is still in the undervalued zone after it saw the biggest drop since Sept 2020 in the recent bottom. This is good as the MVRV 30D cools off in a big way, as it provides less risk and ideal bottom pickings.
Overall, LINK's onchain metrics are showing healthy signs following a reset.
Capitulation likely have occurred based on exchange inflows and daily active deposits, which is ideal for forming bottoming structure.
That said, price is at resistance currently and the next few weeks will eventually reveal where we are going.