Chainlink (LINK) has been trading within a specific range for the last ten weeks, with a recent 20% price increase from $13.8 to retest the $16.6 range. Despite bulls failing to break out on their third attempt in six weeks, underlying on-chain metrics indicated accumulation, suggesting a potential move towards $20.
CryptoQuant’s data showed a declining net flow – the difference between inflows and outflows to an exchange – from December 16 to January 9, hinting at buyers withdrawing LINK from exchanges. Additionally, Chainlink’s exchange supply ratio, which compares exchange reserves to total supply, was decreasing, indicating a withdrawal of LINK tokens from exchanges.
Development activity for LINK picked up strongly after the festival season, a positive sign for long-term investors and possibly instilling confidence in institutional investors. However, network growth and daily active addresses metric showed a slight decline since December 29, potentially signaling a decrease in user base and momentum in the last three weeks.
Both network growth and daily active addresses experienced only a slight drop, yet this could be a sign of possible declining momentum. This slight contraction in the user base might suggest a bearish finding, potentially leading to Chainlink’s price remaining in a range for a longer period.
