Investors in the Chainlink network are currently in panic mode following the market correction that has seen Bitcoin and Ethereum declined by 8% and 6%, respectively, in the latest trading session.
Even though most altcoins have suffered a significant drop in value, others appear to be more badly hit than others as the selling pressure strangles whatever value is left of the tokens.
And the popular on-chain analytics firm, Santiment, revealed that one such token experiencing a strong oversold tendency is Chainlink’s native token, LINK.
Bears Link to LINK
At the time of writing, LINK ranks 26th among the largest cryptocurrencies in market capitalization as it currently trades at $10.67. The asset has shed 10.75% of its market value during the day and slumped by 12.50% over the past week.
However, the token’s trading volume has begun to surge again, following a fresh phase in the price action shortly.
LINK has a history of sudden price surges after a price decline, and this happened to be the case as the trend was about to repeat itself.
LINK seems to be moving sideways with a slight outflow on the crypto exchange platform to balance the supposed price direction. In this case, the price direction appears to coincide with the view of Santiment about the LINK token beginning to make a strong recovery as it revealed that not much panic had been recorded so far.
However, the pressure from bears has been noticeable throughout the majority of last month as bears attempt to make another massive comeback.
Meanwhile, as Santiment noted, LINK tends to rise suddenly after a major price fall, and this scenario also emerged in the present situation.
While this may have taken place after the recent dip, one overlooked metric is the continuous decline in the number of addresses, which began in the summer of last year. In all, this is not a positive phenomenon for LINK as it points to a decline in the adoption rate of the token and the dwindling interest from investors.
LINK Price Outlook
Chainlink has been on a downward spiral since attaining its all-time high in 2021, and fast forward to May 2022; the price has fallen further by more than 78% from its all-time high.
Additionally, it has failed to reach new highs despite the market rally that has enveloped the
entire crypto industry in the second quarter of 2021and. It has now formed another pattern showing a declining movement.
However, despite the setbacks, investors on the Chainlink network are confident about a positive upturn in the fortunes of the blockchain oracle protocol before the end of the year.
The network is regarded as a critical part of the digital asset industry due to its unique role in facilitating the operations of other blockchain protocols by providing them with smart contracts by incorporating real-world data applications for efficiency and optimum performance.
The network is currently undergoing further scaling, which would see it achieve the desired result.
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