Chainlink (LINK): These Metrics Can Aid Short-Term Recovery
LINK holders have endured roller-coaster movements amidst this year’s bear market that saw the market resorting to recording losses. Meanwhile, Chainlink printed down and up price actions that mean a dream come true for swing traders. Nevertheless, its July performance has been somewhat restricted. But can the alternative token be calming before the storm?
LINK has been among the most active digital tokens during the 2022 bear market. Chainlink kept decent price actions even as some leading crypto assets underwent relative price dormancy periods. Also, it happens to be one of the few cryptos that steadied their prices beyond May lows.
Meanwhile, the digital token unexpectedly emerged as among the lowest gains in the top cryptocurrencies by market capitalization amid its recent rally. Chainlink gained 32% only, a somewhat underperformance considering June’s high volatility. The latest rally had LINK peaking at $7.60, but the alt has already lost 12%, changing hands at $6.63 during this publication.
Can 50% RSI Serve as Buy Area?
The 50% Relative Strength Index mark has been a resistance zone in most bullish phases. It often offers support during bearish performances. LINK has seen its price retracing to 50%, but can this mark ensure adequate support to propel Chainlink high?
Such outcomes mean there should be adequate accumulation around current prices to attract bulls. Chainlink’s supply distribution shows that wallets with the highest balances are (already) purchasing at current discounts. Addresses with over 10 million tokens now hold the highest portion of circulating LINK. Meanwhile, they added their holding by 1.01% over the past 24 hours.
Most other leading addresses with 10K to 1 million LINK tokens reduced their holdings, catalyzing the selling momentum. Nevertheless, there were re-accumulation signals, indicating increased possibilities of bullish rebounds.
While publishing this content, Chainlink’s MVRV ratio was down 4.27% from the 13.75% 4-week high. That came as most investors book profits amid the recent rally. Moreover, the token’s velocity advanced significantly over the past 24 hours. That remains a crucial observation since bearish momentum visibly slowed amidst the timeframe.
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