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HomeNewsWhy Chainlink's LINK Price Struggles Despite Rising Development Activity

Why Chainlink’s LINK Price Struggles Despite Rising Development Activity

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  • LINK price struggles to break past $16.041, showing consistent lower lows and highs, indicating a bearish trend.
  • Despite market challenges, transaction velocity for LINK remains high, suggesting frequent trading activity continues.

In recent days, Chainlink, has seen an increase in development activities on its network. This uptick in development is notable within the Real World Assets (RWA) sector, placing Chainlink at the peak of GitHub activity.

This heightened activity indicates a robust commitment to enhancing blockchain solutions for tangible assets.

chainlink-github
Source → @chainlink

Despite this progress in development, Chainlink has faced a downturn in other areas. Analysis from ETHNews, utilizing data from Token Terminal, shows a sharp 66% decrease in daily active users on the network over the last month. Additionally, the revenue generated by Chainlink has dropped a lot, falling by 90%.

chainlink-toke-terminal
Source: Token Terminal

These declines are mirrored in the price of LINK, which has also seen a considerable downturn. Starting from March 26, LINK’s price began to fall from $20.737, displaying a consistent pattern of lower lows and lower highs, a classic indication of a bearish trend in the market.

LINKUSDT_2024-05-13_18-24-37
Source → Tradingview

Through April and May, LINK struggled to surpass the $16.041 level, consistently failing to break this resistance point.

The technical indicators for LINK also reflect challenges

The Chaikin Money Flow (CMF) index has decreased to -0.13, suggesting that the inflow of money into LINK has reduced markedly. Additionally, the Relative Strength Index (RSI) for LINK has dropped to 42.06, further indicating a decrease in bullish momentum for the token.

Furthermore, Chainlink’s network growth has declined, suggesting a decrease in the creation of new addresses and potentially heightening selling pressure on the token.

ChainLink-on-Ethereum-LINK-18.28.43-13-May-2024
Source: Santiment

However, an area of activity that remains high is the velocity of LINK transactions, which has seen a substantial increase, indicating that the frequency of LINK trades remains high despite other negative indicators.

While development activities suggest potential future enhancements and improvements to Chainlink’s offerings, current network and financial metrics reflect a period of difficulty. 

This situation presents a mixed outlook for LINK, where developmental strides may eventually help in reversing the negative trends if they successfully translate into broader network usage and improved market sentiment.

Moving forward, Chainlink may need to continue enhancing its platform and offerings to regain and expand user engagement and financial stability.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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