What Chainlink’s [LINK] supply flows tell us about the bulls’ readiness
Chainlink’s network continues to enjoy robust user growth thanks to its strategic position as a Web3 oracle services provider. However, the aforementioned growth has so far failed to reflect on LINK’s performance.
LINK’s price action has been heavily bearish since Q4 2021, but its bearish momentum has fallen significantly since May. In fact, the bulls have been shy about taking over, judging by the limited upside.
LINK managed to push out of its wedge pattern during the first week of July. Even so, at press time, its price continued to deliver a lot of sideways action on the charts.
Source: TradingView
LINK was trading at $6.34, at press time, following a 2.11% drop over the last 24 hours. Its RSI has been hovering within the 50% range since 8 June. Furthermore, its MFI indicated a lack of directional momentum over the last 48 hours.
LINK investors are currently going through a phase of uncertainty given dwindling activity. This, despite the lack of more downward pressure at its press time support level.
On-chain metrics revealed that active addresses have fallen significantly since the start of July. Active addresses dropped from 6,490 on 30 June to 1,971 by 9 July.
Source: Glassnode
Receiving addresses dropped from 3,720 on 1 July to 1,590 on 9 July, while sending addresses dropped from 1,687 to 813 over the same period. This means that despite the lower price action, there are fewer addresses selling their LINK than those buying.
Exchange balances and flows revealed a similar outcome. Exchange balances have dropped significantly in the last 30 days. Exchange balances peaked at 90.96 million LINK coins to 86.59 million coins over the last four weeks.
Exchange outflows and inflows have also fallen significantly over the same
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