Chainlink (LINK), an extremely popular and widely used oracle network has recorded incredible growth in the first half of 2022. Recently, Chainlink even took to Twitter to share its performance over the last quarter – which mention that it had grown to support to over a thousand decentralised oracle networks and powered over 1350 projects running on 12 different blockchain networks.
The oracle network also stated that it delivered over 3,000,000,000 data points on the chain and served over 7,000,000 randomness requests.
In Q2 2022, Chainlink grew to support 1000+ decentralized oracle networks, powering 1350+ projects across 12+ blockchains & layer 2s.
Key milestones:
📶 3B+ data points
⛓️ 185M+ on-chain calls
🎲 7M+ randomness requestsExplore the latest integrations: https://t.co/nRKpsQncKa pic.twitter.com/lqsWTid8dm
— Chainlink (@chainlink) July 1, 2022
Now while all that may be impressive, the performance of its native token on the charts tells a very different story. It has taken the one of the worst hits amid the bears run that began with the start of 2022 having recorded a fall of over 83% from its all time highs.
CHAINLINK (LINK): A TECHNICAL OVERVIEW
LINK/USD | Source: Tradingview
From a technical standpoint, Chainlink (LINK) is in a very troublesome situation. It has been trading below the trendline resistance ever since December 2021. It did see some hikes in prices along the way but broadly speaking hasn’t been able to provide any definitive breakout. And even now, from the first week of May, it seems like it has bottomed out, but has created a descending triangle pattern (marked in blue). Now if prices are able to hold on to this level, prices may flatline and recover on broader bullish cues but if the $5.5 level is breached, LINK can possibly see further lows.
It is also trading well below the 50-day and 200-day moving averages so the larger trend for this coins remains heavily bearish for the time being. The Relative Strength Index signifies somewhat of a balanced view but can change at any point in time. If by any chance there is some kind of recovery, it will face stiff supply zones at around $18 and when that is breached, around $29 (marked in orange) before reattaining its all time highs.
Check out latest LINK Price, Charts & Data.
ARE ADDRESSES SUDDENLY BECOMING ACTIVE ON THE CHAIN?
Well according to data from Messari, yes. Active addresses on the Chainlink network have spiked despite the drop in prices over the past couple of weeks. Take a look.
Active Addresses Count | Source: Messari.io
When you observe the blue line on the chart above, you will notice that it recently touched its highest point of 2022 just at the beginning of July. And, despite the fact that it has come down a little bit from there, the value is still well above the average for the past six months of 2022.
Now whatever may be the actual reason behind this occurrence, it can be safely assumed that it correlated with the slew of activity that LINK has been involved in, in the past quarter. The news about its outstanding performance in terms of actual growth in the network over the past quarter seemed to have been accepted positively by the network participants and this more of them are coming online and becoming active users.
TRANSACTION VOLUMES SEE A SPIKE TOO!
Transaction volumes on the chain for LINK also saw a major spike in the beginning of the month too, in tandem with the rise in active addresses.
Transaction Volumes | Source: Messari.io
As you can see, right at the beginning of July there was a huge surge in transaction volume, amounting to over $1.8 billion in a matter of a day or two. It is also interesting to note that the spike particularly coincided with their official Tweet regarding the quarterly results.
So putting two and two together, it can be concluded that the network and its various participants have taken the news positively and are reacting in such a manner too.
Check Chainlink Price in INR
CONCLUSION
So finally drawing inferences from the above observations, it is evident that Chainlink is a token that holds a lot of promise and potential for future growth. It has good fundamentals and a set of important problems that it is trying to solve. It’s on-chain metrics also seem to suggest that participants are optimistic about its future. All it needs now is simply a positive nudge from broader global crypto cues and it should be on a strong path of recovery.
HOW TO INVEST IN CHAINLINK (LINK)
Chainlink (LINK) can be easily bought here on CoinDCX along with the best deals in the market. Just download the CoinDCX App crypto investing app, enter the details required and wait for your profile to get verified. Once done, fund your wallet and buy Chainlink. Moreover, with Crypto Investment Plan(CIP) you can invest in easy weekly installments too.
Additional Read: Crypto Market Weekly
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