Chainlink Network Activity Plummets to 8-Month Lows Amid Bear Market

Chainlink Network Activity Plummets to 8-Month Lows Amid Bear Market

Oracle service provider Chainlink (LINK) has suffered a heavy bearish blow with the broader market correction over the last month. LINK is currently down by over 65% from its all-time high of $52.91 recorded on May 10.

Consequently, LINK has dropped in rankings from the top ten largest cryptocurrency by market cap and currently holds the number 15 spot. This drop comes amid the plummeting address activity and declining network growth.

A recent report by Santiment, a prominent on-chain data provider, revealed that LINK suffered a significant drop in the number of new address creation, which translates as a drop in user adoption as Chainlink loses upward traction.

The report by Santiment also showed that the Chainlink network has fallen to low levels seen in October 2020. The report noted that:

“Less and less addresses were interacting with LINK for the first time. This doesn’t look like a great sign.”

Meanwhile, with the October 2020 bottom, we saw a bullish divergence as the LINK price surged while network growth remained stagnant.

Furthermore, along with new address creation, the number of active addresses has recorded a significant decline. Reports show that active LINK addresses have dropped by over 50% since April 2021. Presently, there are only 5,000 active daily LINK addresses compared to 13,000 active addresses in April.

Key Chainlink Levels to Watch — June 25

LINK has had significant difficulty recovering from the recent market crash despite a goodish rebound from the $15.00 support. Following the rebound, the fifteenth-largest cryptocurrency has remained rangebound between $20.00 and $15.00 amid a healthy recovery across the broader market.

LINKUSD – 4-Hour Chart

That said, the $20.00 mark is the immediate focus of bulls currently. A break above this resistance level should inspire more bullish activities and detach Chainlink from the bearish tripwire. On the other hand, any descent from the current price level should get repelled by the critical $15.00 support.

Meanwhile, our resistance levels are at $33,000, $33,750, and $35,000, and our key support levels are at $32,000, $31,000, and $30,000.

Total Market Capitalization: $1.37 trillion

Chainlink Market Capitalization: $7.95 billion

Chainlink Dominance: 0.58%

Market Rank: #15

 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.