Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Chainlink data offered different conclusions from price action and on-chain metrics
- The BTC resistance at $30k could play a vital role in Chainlink’s reaction to its $8 resistance zone
Chainlink [LINK] saw the launch of Chainlink Staking v0.1 last December. On 19 October the network announced its plans to roll out Staking v0.2, which has advantages over the previous version such as dynamic rewards, better security, and more staking flexibility.
Read Chainlink’s [LINK] Price Prediction 2023-24
On the price front too, LINK was performing bullishly. A recent report by AMBCrypto detailed that the $7-$7.1 region was lined with sizeable buy orders and that LINK could rally from there. This analysis was vindicated, with the buyers forcing a rally from $7.21.
The bullish breaker block was defended yet again this week
The market structure of LINK on the one-day chart was bearish. However, the past 24 hours saw LINK register gains that measured just over 5%. A move above $7.83 would be needed to flip the structure bullishly.
On the other hand, the Relative Strength Index (RSI) continued to stay above neutral 50 and signaled that the momentum had not flipped bearishly yet. Additionally, the On-Balance Volume (OBV) also climbed higher in recent weeks to reflect strong buying volume.
To the north, the local highs at $8.27 sat in the same region where an H12 bearish order block (red box) occurred back in July. Hence a move past the $7.65 local resistance would likely falter or at least slow down in the $8-$8.4 resistance zone.
On-chain metrics suggested LINK accumulation, but only for a brief period
On 13 October, Santiment data revealed that 4 million LINK tokens flowed out of exchanges. The days before this saw a rise in the Mean Coin Age. However, the metric was already trending downward during this outflow. They were at odds, and the inference was that the outflow likely saw additional movement on the network.
Realistic or not, here’s LINK’s market cap in BTC’s terms
The positive Market Value to Realized Value (MVRV) ratio raised small concerns that profit-taking activity could increase if LINK prices climb further. The price action and the metrics were not in agreement, and with Bitcoin [BTC] near the $30k resistance, LINK bulls could defend their profits if the prices approach the $8 resistance.