{"id":205475,"date":"2021-03-18T19:57:00","date_gmt":"2021-03-18T16:57:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-key-chainlink-price-metrics-signal-link-is-gathering-strength\/"},"modified":"2023-09-16T13:47:13","modified_gmt":"2023-09-16T10:47:13","slug":"3-key-chainlink-price-metrics-signal-link-is-gathering-strength","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-key-chainlink-price-metrics-signal-link-is-gathering-strength\/","title":{"rendered":"# 3 key Chainlink price metrics signal LINK is gathering strength"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3acef6d5f06\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3acef6d5f06\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-key-chainlink-price-metrics-signal-link-is-gathering-strength\/#On-chain_data_displays_strength\" >On-chain data displays strength<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-key-chainlink-price-metrics-signal-link-is-gathering-strength\/#Futures_contracts_demand_held_strong\" >Futures contracts demand held strong<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-key-chainlink-price-metrics-signal-link-is-gathering-strength\/#Exchange_or_buy_LTC\" >Exchange or buy LTC<\/a><\/li><\/ul><\/nav><\/div>\n<audio class=\"wp-audio-shortcode\" id=\"audio-205475-1\" preload=\"none\" style=\"width: 100%;\" controls=\"controls\"><source type=\"audio\/mpeg\" src=\"https:\/\/s3.cointelegraph.com\/audio\/62754.7710e456-5dd6-4d64-9005-b7119ffbc954.mp3?_=1\" \/><a href=\"https:\/\/s3.cointelegraph.com\/audio\/62754.7710e456-5dd6-4d64-9005-b7119ffbc954.mp3\">https:\/\/s3.cointelegraph.com\/audio\/62754.7710e456-5dd6-4d64-9005-b7119ffbc954.mp3<\/a><\/audio>\n<p>Chainlink (<a href=\"https:\/\/www.bitdegree.org\/cryptocurrency-prices\/chainlink-link-price\/markets\" target=\"_blank\" rel=\"noopener nofollow\">LINK<\/a>) has had a pretty rough month, dropping as much as 45% after marking a $37 all-time high on Feb. 20. While the recent losses may look surprising when compared against other altcoins&#8217; gains, LINK still managed to rally 640% over the past nine months.<\/p>\n<p>Therefore, there should be no reason to interpret the failure to sustain above $32 as a trend reversal. On-chain indicators like daily active addresses and transactions, along with the open interest on futures contracts, continue to display strength.<\/p>\n<figure style=\"width: 1286px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-03\/85c61ce5-b8fe-4593-aafa-ed6d0d655259.png\" width=\"1286\" height=\"705\" \/><figcaption class=\"wp-caption-text\">Chainlink price at Binance, USDT. Source: TradingView<\/figcaption><\/figure>\n<p>Chainlink was also very well positioned to benefit from the decentralized finance (DeFi) boom. Many of the price feed that connect separate blockchains and decentralized exchanges utilize their price oracles for price discovery.<\/p>\n<p>The project was proactive when\u00a0Ethereum network fees skyrocketed\u00a0and quickly adapted to &#8220;off-chain reporting,&#8221; which replaced on-chain data aggregation with an off-chain consensus round. As\u00a0previously reported by Cointelegraph, &#8220;The aggregated data is then passed on to the blockchain, where a smart contract verifies that a quorum of nodes agreed on this version of the data.&#8221;<\/p>\n<p>Even with strong growth in DeFi and healthy on-chain indicators, the impressive thing is that LINK price is struggling to retake the $30 support.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"On-chain_data_displays_strength\"><\/span>On-chain data displays strength<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Transfer value is a leading on-chain indicator measuring user activity as it adds up all the coins moved daily. Analysis from CoinMetrics provides more precise data by adjusting these figures to exclude mixers and transactions between the same entities.<\/p>\n<figure style=\"width: 1056px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-03\/ef782499-0335-4180-bb8d-4a48b5ad41b5.png\" alt=\"\" width=\"1056\" height=\"536\" \/><figcaption class=\"wp-caption-text\">Chainlink daily adjusted transfer sum 7-day average. Source: CoinMetrics<\/figcaption><\/figure>\n<p>Daily adjusted transfers have been hovering around $600 million, a 235% accumulated gain since the start of 2021. The current level is two times larger than Litecoin<\/p>\n<div>\n<p>LTC<img decoding=\"async\" src=\"https:\/\/cointelegraph.com\/assets\/img\/tickers\/tickers_up.svg\" alt=\"tickers down\" \/>$65.14, a cryptocurrency with a 7% larger market capitalization, but the project&#8217;s primary use-case has been declining as second-layer scaling solutions evolve.<\/p>\n<\/div>\n<p>Daily active addresses are another vital on-chain metric, albeit easily inflated when transfer costs are relatively low. Considering Chainlink runs on the Ethereum network, this most certainly could not be the case.<\/p>\n<figure style=\"width: 1044px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-03\/2104a7c3-ffea-426e-84a4-7b052ed6da79.png\" alt=\"\" width=\"1044\" height=\"509\" \/><figcaption class=\"wp-caption-text\">Chainlink daily active addresses 7-day average. Source: CoinMetrics<\/figcaption><\/figure>\n<p>As the data above indicates, despite the recent drop, Chainlink&#8217;s daily active addresses have held above 10,000. One should factor in the rising Ethereum network fees, which might explain the failure to produce new highs. Nevertheless, the indicator&#8217;s 14% gain in 2021 can be deemed positive.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Futures_contracts_demand_held_strong\"><\/span>Futures contracts demand held strong<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Had top traders given up on Chainlink or somehow lost interest, the futures contracts open interest would have been impacted. Even though this metric does not necessarily dictate bullishness, a healthy amount of activity in derivatives indicates that investors are interested.<\/p>\n<figure style=\"width: 1162px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-03\/b609c620-75d5-468f-ac0b-37ea0a560145.png\" alt=\"\" width=\"1162\" height=\"652\" \/><figcaption class=\"wp-caption-text\">Chainlink futures open interest. Source: Coinalyze.net<\/figcaption><\/figure>\n<p>The above data shows no evidence of a reduction in the open interest on futures contracts. The sharp drop on Feb. 21 and Feb. 22 reflects the 41% price crash that took place. Meanwhile, less than a week later, LINK regained the $26 support level, and its futures open interest continued to increase.<\/p>\n<p>If the current bullish market conditions persist, investors may begin to speculate that an &#8216;altcoin season is at hand. Currently, Chainlink looks well-positioned to benefit from the peak in DeFi interest.<\/p>\n<p><em>The views and opinions expressed here are solely those of the\u00a0<\/em><a href=\"https:\/\/twitter.com\/noshitcoins\" target=\"_blank\" rel=\"noopener nofollow\"><em>author<\/em><\/a><em>\u00a0and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<div class=\"changelly-widget_PWTcc\" data-gtm-locator=\"changelly-widget\">\n<h2 class=\"changelly-widget__title_yl6Vp\"><span class=\"ez-toc-section\" id=\"Exchange_or_buy_LTC\"><\/span>Exchange or buy LTC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/div>\n<p><iframe loading=\"lazy\" src=\"https:\/\/widget.changelly.com\/v2\/?theme=day&amp;merchantId=QIGmvRRnNaD4syJ4&amp;widgetId=2&amp;c2cAmount=100&amp;f2cAmount=100&amp;c2cFrom=usdt20-crypto&amp;c2cTo=ltc-crypto&amp;f2cFrom=usd-fiat&amp;f2cTo=ltc-crypto&amp;headerId=3\" width=\"100%\" height=\"450\" frameborder=\"none\"><br \/>\n<\/iframe><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-key-chainlink-price-metrics-signal-link-is-gathering-strength\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chainlink (LINK) has had a pretty rough month, dropping as much as 45% after marking a $37 all-time high on Feb. 20. While the recent losses may look surprising when compared against other altcoins&#8217; gains, LINK still managed to rally 640% over the past nine months. Therefore, there should be no reason to interpret the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":205476,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDMvMjZlODJiZjgtNTE3Yy00MDhhLWJhMGMtOTkzYjI0NzU2M2E0LmpwZw==.jpg","fifu_image_alt":"# 3 key Chainlink price metrics signal LINK is gathering strength","footnotes":""},"categories":[1],"tags":[74867,75167,74863,74860,75012,75846,76111,74939,73785],"class_list":["post-205475","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-chainlink","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-futures","tag-litecoin-price","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/205475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=205475"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/205475\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/205476"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=205475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=205475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=205475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}