Chainlink’s (LINK) sharp 40% decline over the past month now raises questions about a potential rebound. The downturn coincides with a network contraction, indicating reduced activity.
The token is currently trading at a little over $18. However, certain factors signal that a rebound might just be on the horizon.
Comeback For LINK
According to the latest findings by popular crypto analyst Ali Martinez, the MVRV Ratio, which measures trader profitability, reveals that those who purchased LINK in the last 30 days are at an average loss of 16%, a level historically linked to selling exhaustion. Additionally, whales are showing confidence despite the dip.
In fact, these entities accumulated over $20 million worth of LINK tokens in the past 24 hours alone, which demonstrated early signs of a potential recovery.
However, for a confirmed uptrend, LINK must break above $19 to target $23.70. On the downside, the critical $15.50 support level is crucial – losing it could invalidate the bullish outlook and lead to further losses.
Chainlink has been one of the top assets that World Liberty Financial, a financial company linked to the Trump family, has invested in over the past two months. This not only briefly boosted LINK’s price in December but also intensified whale accumulation.
US blockchain company Ripple recently partnered with Chainlink to accelerate the adoption of the cross-border payments firm’s stablecoin, Ripple USD (RLUSD). As part of the deal, Chainlink’s price oracle feeds will offer real-time pricing data for RLUSD on Ethereum to help DeFi applications integrate the stablecoin for trading and lending, among other use cases.
Chainlink Tops in RWA Space
Santiment recently reported that Chainlink continues to dominate the development activity in the real-world assets (RWA) sector.
The decentralized oracle network outpaced competitors such as Ethereum-based synthetic asset platform Synthetix (SNX), privacy and tokenization-focused Dusk Foundation (DUSK), and Reserve Protocol (RSR), which lets users create a new currency backed 1:1 by a collection of tokenized assets. Chainlink recorded around 669 significant GitHub events over the past 30 days.
