Chainlink joins the list of most traded smart contracts among top ETH whales. LINK bears encounter resistance that threatens to end their recent dominance.
The Chainlink blockchain is gradually expanding its tentacles across the decentralized landscape. Long-term expectations are extremely high, but the native token LINK remains undervalued at best. But there is some hope, even in the short term.
Read LINK’s price forecast 2023-2024
The latest WhaleStats alert puts LINK in the crosshairs of addresses with large balances. This is because Chainlink has been included in the list of most used smart contracts in the top 1,000 ETH whales in the past 24 hours. This observation confirms that ChainLink is still experiencing a healthy level of usability.
JUST IN: $LINK @chain link one of the MOST USED smart contracts in the top 1000 #ETH whales in the last 24 hours🐳
Check out the top 100 whales here: https://t.co/jFn1zIOq03
(and hodl $BBW to see data for the top 1000!)#LINK #whale statistics #babywhale #BBW pic.twitter.com/pSPFvjivwD
— WhaleStats (crypto whale tracking) (@WhaleStats) January 19, 2023
The timing of this sighting is ideal, especially given LINK’s price point. The token retreated by as much as 10% from its current monthly high. This places it within the 50-day moving average, as well as the 50% RSI level where it is likely to bounce.
Source: TradingView
The price was already starting to show signs of a possible recovery. There are some interesting observations that show why the downside may have been shortened.
We’ve seen a massive drop in the MVRV ratio since January 11, confirming a significant drop in profitability. The same metric is currently at a new monthly low.
Source: Sentiment
More specifically, LINK’s daily active addresses rose to a new monthly high in the past 24 hours, at the time of writing. These sightings likely represent a resurgence in rising demand as the bears failed to maintain dominance.
Hunting on thin ice?
An analysis of LINK’s exchange flows confirms that bears used to be in control. However, the past 24 hours have also seen a surge in currency outflows, although not enough to support a strong rally.
Source: Sentiment
These observations point to potential near-term upside. Despite this, LINK still underperforms in some segments, regardless of the utility it promises to provide through cross-chain integration.
How much are 1.10.100 LINKs worth today?
One area that is relatively underperforming is the amount of LINK delivery locked into the smart contracts. This amount has been falling for the past four weeks, especially during the first weeks of January when prices were on the rise.
Source: Glassnode
One possible reason for this outcome is that investors have chosen to focus on short-term gains. This reflects the uncertainty of the latest crypto rally in the current month. More so the uncertainty behind whether the rally represents the start of the next bull run.
This post Chainlink Whales Bring More Utility – Is a Bounce Back on the Map for LINK?
was published first on https://ambcrypto.com/chainlink-whales-drive-more-utility-is-a-bounce-back-on-the-card-for-link/
