Analysis

LINK Down 60% From November High, How Investors Make Money?

The devastation of the bear has finally reached LINK, and so severe that the Chainlink network’s suite of DeFi protocol integrations failed to save it. Meanwhile, the market stopped falling, but LINK has fallen below the safe zone.

SHORTCUT back to previous levels

At the time of writing, 63.68% of Chainlink’s 628,62,000 addresses are at a loss. This might not be a big deal as the entire market is losing money.

The steady price drop in the last 2 months is definitely the cause of this.

But when it comes to LINK, things are significantly worse as this is what investors have suffered the most for more than 3 years.

The last time the majority of investors lost money was in December 2018 when it hit 80.7%.

AmountsHa investment LINK loses money | Source: Intotheblock

Therefore, it is clear that the investors are very frustrated because their participation rate is decreasing across the network.

Daily active users used to peak at 15-16,000 on average and stayed above 3,000 through the end of December 2021. However, in the second half of January, that average dropped to 2.7k and is now at 2.2k.

number of places just works Above chain link | Source: Intotheblock

As a result, the number of on-chain transactions also dropped by 65% ​​over a 5-month period.

Number of on-chain transactions on Chainlink | Source: Intotheblock

While whales are known for being active players regardless of prevailing market conditions, LINK whales have also slowed for now. With trades worth less than $400 million in a month, it’s clear that LINK is playing by the bears’ rules at the moment.

Possibility of escape position?

LINK’s price action is a bit of a concern as it is expected to remain inside the wedge to the downside. Despite several attempts to break the long-term resistance, the price did not work with the bulls.

Fortunately, the price is still quite a way above the lower trendline at $13.3. Therefore, LINK has some room to recover and attempt another breakout. Eventually, when the token reaches a significant footprint, purchase demand will increase. This would also be a better time to decide to go long.

SHORTCUT still stuck in the wedge accordingly bearish | Source: TradingView

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Missed the AAVE Bullish Ride? This New Presale Can Turn Your Thousands into Millions

While Aave finds itself in uncertain territory, a fresh face in the crypto scene, Qubetics…

1 hour ago

Dogecoin Price Forecast: Analysts Push For $0.2288 DOGE While This Ethereum Altcoin Eyes 8,000% Gains In The Next 16 Days

Analysts push for a Dogecoin price surge to its $0.2288 yearly high while ETFSwap (ETFS)…

2 hours ago

Below $1 Swift Altcoin Competitor Could Overshadow XRP Price Potential Election Rally 

Discover the promising altcoin under $1 that may outperform XRP amid election volatility and market…

2 hours ago

Polkadot and SP Negócios Collaborate to Enhance Crypto Economy Development

Campinas, Brazil, 5th November 2024, Chainwire

2 hours ago

Terra Shuttle Bridge Has Now Been Disabled

Terra Shuttle Bridge has now been closed, and all remaining LUNC and USTC tokens have…

4 hours ago

FLOKI Announces Dubai Takeover with WAFI Mall Campaign

Miami, Florida, 5th November 2024, Chainwire

4 hours ago

This website uses cookies.