Chainlink’s Network Grows, Reaching 2000 New Addresses In A Day

Chainlink’s network keeps on growing with a steady rate with spikes of more than 2,000 new addresses in one day. The LINK holders are also increasing in number but despite the optimism, the technical indexes show that a correction is coming for the LINK price.

Chainlink’s network grows despite the financial havoc that was caused by the Coronavirus pandemic. The technical indexes show that this cryptocurrency could still go through the bearish impulse before the uptrend continues. Over the year, Chainlink has been characterized for its high volatility levels since as of January, the oracle service increased by 1.9 times to an all-time high of nearly $5 in early March.

As the global financial meltdown enhanced, the investors hurried to exchange the profits from substantial price increases and to protect their capital from further unpleasant market conditions. The sell-off saw the price of LINK taking a 70% nosedive and pushing the price to $1.5 which was only nine days after the peak. Despite the massive price drop, Chainlink was able to recover most of the losses and is now hovering at $3. The on-chain metrics show that the network continues to grow despite the global economic collapse.  Chainlink is also going through a steady increase in the number of addresses that are created on the network. The network growth continues to reach higher levels each month.

There was a spike of more than 2,000 new addresses that were created in one day while in March it even crossed the 2,500 marks. The fundamental metric seems to be heading to other higher levels as it is currently hanging around 2,000 per day.  The indicators for Chainlink are presenting a sell signal right now in the form of a green nine candlestick. This formation forecasts another correction before the continuation of the uptrend. A spike in the selling pressure behind Link combined with two candlestick trading below the red candlestick could act as a confirmation of the pessimistic outlook.

The candlestick below the 200-12H moving average could start an increase in supply that will send Chainlink to seek more support around the 50-12H moving average. This support barrier is sitting around $2.5 and if we put aside the probability of the bearish sentiment, the user adoption will continue to increase over time.