According to Coinmarketcap.com, Chainlink is trading above $ 20. Over the past 24 hours, trading volume has dropped by 5%, which indicates a drop in liquidity and volatility, but does not negatively affect its price. However, from its all-time high of $ 52.70 (Coingecko info), Chainlink’s price dropped to $ 25.78.
Compared to the previous month, this is a decrease of more than 50%, but this still cannot be called a bearish trend for LINK, since in previous times, when the LINK trader’s profitability fell to a similar minimum over a 30-day period, there were powerful rebounds.
1. Indicators of hodlers
As seen in the chart above, the bounces in the LINK price are due to the accumulation of LINK traders. The composition of the hodlers is the key to the LINK price. At the current price level, more than 45% of hodlers are in the profit zone. The concentration of large hodlers is 78%, and in the last week there were more than $ 2.7 billion in transactions.
2. On-chain indicators
This transaction volume indicates that the LINK price will face a bullish scenario in the future. However, the price could fall if the LINK recovery is interrupted by an increase in LINK balance on the exchanges. As an increase in balance will indicate increased liquidity and the presence of LINK in the spot exchange markets, the likelihood of a fall in prices will increase. On-chain metrics and hodlers are currently providing a bullish scenario, resisting selling pressure.
3. Technology
New collaborations and updates on the LINK network have increased investment and demand. Events awaiting LINK in August may also drive up prices. Until then, the price is expected to remain in the current range or continue to rally. A fall in prices is unlikely and is possible only if pressure from sellers increases. Most often, LINK positively correlates with bitcoin during its growth, however, it can continue to grow after the price of bitcoin falls. There is a possibility that LINK will continue to trade above $ 20.
Among other crypto projects, LINK has a relatively high market cap and correlation with Bitcoin. The increase in the total locked value (TVL) and on-chain activity of LINK users is bullish. The readings are bouncing and pointing to the possibility of a bullish run by LINK this week.
So far, the growth of bitcoin creates very favorable conditions, since now the main cryptocurrency is approaching the $ 41,000 mark.
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