Is Chainlink finally recovering? Here is a detailed report
This is what Chainlink investors should expect in Q3 2023
- LINK’s EMA Ribbon displayed the possibility of a bullish crossover
- Despite the uptick in price, the token’s weighted sentiment declined
Chainlink [LINK] gained upward momentum in the last week, which put a smile on investors’ faces. Additionally, as per a new analysis, LINK might have already entered a recovery phase. The graph suggested that LINK might soon enter a bull rally.
Read Chainlink [LINK] Price Prediction 2023-24
Is LINK on the path to recovery?
As per a tweet from Rekt Capital, LINK successfully confirmed its return into its multi-year range. Not only that, but its price chart also turned bullish. As per CoinMarketCap, LINK was up by more than 7% in the last seven days.
Additionally, the token’s price went up by over 2.3% in the last 24 hours alone. At press time, it was trading at $6.61 billion, with a market capitalization of over $6 billion.
A look at the token’s daily chart gave a bullish notion, as most of the metrics supported the buyers. For instance, the distance between the 20-day Exponential Moving Average (EMA) and the 55-day EMA was reducing. This increased the chances of a bullish crossover.
Furthermore, the Moving Average Convergence Divergence (MACD)’s data also complemented that of the EMA Ribbon which also looked bullish. On top of that, Chainlink’s Relative Strength Index (RSI) was also high, which was yet another bullish signal.
Source:TradingView
A look at LINK’s metrics showed that things looked pretty good for the altcoin. Additionally, as per CryptoQuant, LINK’s exchange reserve was declining. This was a positive update, as it suggested the selling pressure was less on the token.
On top of that, Chainlink’s number of transactions and the daily number of active addresses were higher than the last day, which too was bullish.
Are investors having second thoughts?
Not only were the aforementioned metrics bullish, but a few other metrics were also supporting the bulls. For instance, the blockchain’s Market Value to Realized Value (MVRV) Ratio improved considerably last week. This gave hope for a further hike in its price over the coming days.
Source: Santiment
Realistic or not, here’s LINK market cap in BTC‘s terms
However, data from Santiment revealed a different picture. As per the chart given below, LINK’s weighted sentiment declined sharply last week.
A decline in the metric suggested that investors’ confidence in the token was declining. It is interesting to note that despite a drop, LINK’s social dominance gained upward momentum, which was a positive sign for a blockchain.
Source: Santiment
