- Development activity on Chainlink has increased significantly in recent days.
- LINK’s price continued to decline as network growth slowed.
Chain link [LINK] has been one of the most prominent infrastructure protocols in the crypto space for quite some time.
One reason for this would be the increasing development activity on the Chainlink network.
A spike in activity
Recent data shows that Chainlink is at the forefront of GitHub activity in the Real World Assets (RWA) sector, underscoring its commitment to pioneering blockchain solutions for real-world assets.
The increase in development activities for Chainlink could help the protocol improve its products and offerings. This could in turn improve sentiment towards the network and attract more users.
Source:
However, overall activity on the network had decreased significantly.
AMBCrypto’s analysis of Token Terminal’s data found that the number of active daily users on the network has fallen by 66% over the past month.
In combination with this, the turnover generated by Chainlink fell by as much as 90%.
Source: Token terminal
LINK’s price also did not do well. Since March 26, LINK’s price started seeing its downfall.
It plummeted from the price of $20,737 and started indicating lower lows and lower highs, which are signs of a bearish trend.
There was no sign of significant positive price action in April and May, as LINK’s price failed to break past the $16,041 mark.
LINK would need to test this level multiple times and weaken resistance before it could potentially target a price reversal in the future.
The CMF (Chaikin Money Flow) also showed a negative picture as it fell to -0.13. A falling CMF indicated that money flowing into LINK had fallen significantly in recent days.
Moreover, the RSI (Relative Strength Index) for LINK had also fallen to 42.06, implying that the bullish momentum surrounding the LINK token had waned.
Source: trading view
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Chainlink’s network growth had also slowed significantly in recent days, implying that new addresses were losing interest in the token. This could further increase selling pressure.
However, the speed around LINK continued to increase, meaning that the frequency of LINK transactions had become significantly high in recent days.
Source: Santiment