Chainlink Price Stagnation: 3 Critical Metrics to Consider
The price of Chainlink (LINK) has remained stagnant at around $11, with bulls struggling to extend the recent rally. However, there are three critical metrics to consider that could trigger a prolonged consolidation phase in the days ahead.
Chainlink Network Activity and New User Acquisition Slow-Down
Last week, Chainlink gained attention as it reached a 16-month price peak. However, on-chain data shows that the network activity has decreased significantly. Active addresses have dropped by 60% within a week, suggesting lower demand for the project’s services.
New Users Have Also Reduced Significantly as Network Growth Stalls
The price rally of Chainlink was fueled by new users entering the ecosystem. However, recent data reveals a decline in new addresses created on the network. Network growth has decreased by 60% over the past week, which can negatively impact the token’s price.
LINK Price Prediction: Further Consolidation Before Another Breakout
Considering the current on-chain circumstances, it is likely that Chainlink’s price will consolidate around $10 instead of retesting $15. The Exchange Order Books Chart indicates an excess of active sell orders compared to market demand. If support at $10.80 fails, a downswing towards $9 could occur.
Hot Take: Chainlink’s Stagnating Price Raises Concerns About Network Demand
The stagnation of Chainlink’s price and the decline in network activity and new user acquisition raise concerns about the demand for the project. While market sentiments remain positive, it is crucial to monitor these critical metrics as they could impact LINK’s future performance.
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