In This Post:
- Chainlink traders are buying at lower prices, hinting at recovery.
- More new and active addresses could boost the price to $14 and $18.
- Liquidations over $5 million increase risk of a price drop.
Chainlink’s price is steady above $10 support. This follows a tough sell-off over the weekend and a bad Monday. Traders are buying at these lower prices, suggesting a possible recovery. Liquidations have jumped past $5 million, adding pressure. However, increased network activity offers hope for a comeback.
Increasing Network Activity
Recent data shows a big rise in new and active addresses on the Chainlink network. By Friday, over 1,100 new addresses were created daily, up from 622 on Thursday. Active addresses also rose to about 3,800 from 2,500 during the same period.
This rise in new addresses shows more interest in Chainlink. More active addresses mean more people are using the network. These increases point to strong network growth and a positive outlook for Chainlink’s price.
Potential Price Recovery
The Relative Strength Index (RSI) is oversold. This favors sellers but also suggests a possible trend reversal. If the key support at $8 holds, traders might buy more. The rise in network activity supports this hopeful outcome. As Chainlink’s price holds around $10, more traders might join in. The next targets for profit are $14 and $18.
Risks and Bearish Signals
However, if the price drops below $8, Chainlink’s price could fall further. Two “death crosses” have formed after the 20-day Exponential Moving Average (EMA) crossed below the 50-day and 100-day EMAs. This bearish pattern, along with high liquidations, shows a short-term negative outlook. Traders should watch Chainlink’s behavior around $8 to avoid potential drops to $6.
Looking Forward
Chainlink’s price is holding above $10 with signs of a possible recovery due to rising network activity. More new and active addresses show strong interest and usage. While the market remains tough, these positive signals suggest a rebound is possible. Traders should watch the $10 support level and the key resistance levels at $14 and $18. Keeping an eye on the $8 support is crucial to avoid potential losses.
