LINK, the native cryptocurrency of oracle service provider Chainlink, is trading 6% up today at $28.82 with a market cap of $12.3 billion. Chainlink (LINK) has shown a strong pullback after falling to a low of $17.50 during the recent market correction.
After hitting this low last Sunday on May 23, the LINK price doubled to $35 within four days. However, it has been unable to breach the resistance trend line as shown in the chart below from on-chain data provider Santiment.
Today, Chainlink seems to be making another attempt to break past this resistance trend line and set an upward trend. On the other hand, Santiment shows that it is important for LINK to stay above the support area. As the Santiment report notes:
“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.”advertisement
Chainlink (LINK) Exchange Inflows Spike
However, during the recent bottom of the LINK price, the Daily Active Deposits (DAD) have surged showing that a large number of people ended up liquidating their supply. Besides, the below graph clearly shows that a large number of LINK investors made heavy exchange deposits.
The positive indicator for LINK is that the MVRV 30-Day has cooled down which suggests fewer risks and ideal bottom pickings. Looking forward, Santiment notes:
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.
Chainlink (LINK) continues to remain one of the top altcoin picks for investors.