- Development activity on the Chainlink blockchain has surged by over 14,000% in the past 30 days, highlighting heightened developer engagement.
- The LINK price Relative Strength Index (RSI) rose to 71, signaling increased buyer interest, while the Chaikin Money Flow (CMF) flipped positive at 0.17, reinforcing the notion of sustained buying activity.
The Chainlink (LINK) price displayed signs of recovery from previous bearish trends with a notable 14% increase since yesterday, pushing its price to beyond $12.30. This rally coincided with a major movement of LINK tokens out of exchanges, suggesting massive accumulations.
Chainlink Price Soars Amid Major Accumulation
According to CryptoQuant data, the netflows for LINK on spot exchanges have been largely negative over the past month. Specifically, on November 4, LINK recorded its highest net outflows in 30 days with 400,000 tokens moved out of exchanges. For context, this pattern is often indicative of reduced selling pressure as traders withdraw assets, which indicates their expectation for potential price appreciation.
Currently, for further upsurge in this positive trend, LINK price momentum requires solid buying support. On the four-hour chart, several indicators suggest that buyer interest is increasing. The Relative Strength Index (RSI) surged to 71, indicating that bullish momentum has intensified. This sharp RSI increase suggests active buying contributed to the recent LINK price upswing
Additionally, the Chaikin Money Flow (CMF), which gauges buying and selling pressure, flipped positive and reached a value of 0.17. This metric also points to sustained buying activity. If this trend continues, LINK could target the 1.618 Fibonacci extension level, which is estimated at around $13.13.
The four-hour chart also shows a V-shaped recovery, indicating a strong bounce back from the recent downtrend with improved market confidence. At press time, the Chainlink price continued gaining with a 4.56% increase, trading at $12.36 on Thursday, November 7.
The Blockchain Activity Surges
Recent data from Santiment reveals that Chainlink has emerged as a leading Real World Asset (RWA) project based on development activity. Over the last 30 days, development metrics for the network jumped by over 14,000%, reflecting a surge in developer engagement on the Chainlink blockchain, reported CNF.
Furthermore, the network’s active addresses have risen significantly within a brief period. In the past four days alone, the count of daily active addresses increased from 1,930 to 2,750. Typically, a rise in active addresses signifies growing blockchain usage and user engagement, per the CNF report. Analysts often see this as a positive signal for asset value appreciation, which could also propel LINK price further.
In the derivatives market, speculative interest in LINK has risen notably. After a recent drop, open interest for LINK gained by 1.81% to $206.93 million at the time of writing, according to Coinglass data. Alongside this, the Funding Rate, a measure of the cost to hold long or short positions, has also climbed to its highest point of 0.0147% this month. This signals an increase in long positions as traders bet on further LINK price gains.
Moreover, short liquidations have outpaced long liquidations, hinting at a continued uptrend at least in the short term. The short liquidations soared to $685,985 on Thursday while long liquidations amounted to $192,580. This means that short traders are buying back their positions to minimize losses, which could boost the current LINK price surge.
