The thrash of the bears has also reached Chainlink and the myriad DeFi protocol integrations have failed to make it either. By the time the market stopped dipping, Chainlink was already falling below its safe zone.
Chainlink returns to the past
At the time of this report, 63.68% of Chainlink’s 628.62k addresses were witnessing losses. Now this may not be such a big deal in general as the whole market is seeing losses.
The continued declines seen in the past two months are certainly to blame. But especially when it comes to Chainlink, it’s significantly worse as these are the most Chainlink investors in over three years.
The last time such a large proportion of investors lost money was in December 2018, when the figure reached 80.7%.
Thus, the dejection is evident in investor behavior as their participation has declined across the network.
Daily active users who averaged around 15-16k at their peak still remained above 3k until the end of December 2021. However, in mid-January, this average dropped to 2.7k and currently stands at 2.2k.
As a result, on-chain transactions also fell by 65% in five months.
While whales are known to be active players regardless of prevailing market conditions, LINK whales have also slowed down at this point. By executing trades worth less than $400 million for a month, it becomes clear that LINK is currently adhering to the bears’ rules.
Chance of escape?
Chainlink’s price action is somewhat worrisome as the downward trend wedge is set to close soon. Despite some attempts to break through the long-standing resistance, LINK has failed to ride with the bulls.
Fortunately, the price is still well above the lower trendline of $13.3. So this gives LINK some space to recover and try another breach. If the token manages to hit a significant figure, the buy demand would eventually come in. It would also be a better time to opt for long trades.
This post How are the investors making profits now that Chainlink is down 60% from its November highs?
was published first on https://ambcrypto.com/with-chainlink-down-60-from-november-highs-how-are-the-investors-making-profit/