The cryptocurrency market failed to show stable growth in September due to the formation of a negative news background and several significant collapses. However, during periods of correction and falling prices, it is possible to track and identify a number of coins that have good prospects for the future. The market has already discovered the ADA and SOL coin projects, but in September, Colin Chainlink intercepted the obvious interest of the institutions. Over the past three weeks, major investors have purchased coins worth more than $1.4 billion, which is almost 3.5% of the total cryptocurrency issue.
Chainlink is a cryptocurrency that facilitates access to goods and services using ETH smart contract technology using the API. Due to this, users can connect to payment systems and make transactions. The coin closes the top 15 crypto assets by market capitalization with a result of $10.3 billion and average daily trading volumes in the region of $937 million. Yesterday, the coin has declined by 7.7% and was trading at $23.22 at 9:00 UTC+00. During the collapse of the crypto market in mid-September, large holders began to actively buy coins, which is why the metric of the number of addresses owning more than 1,000,000 coins reached 16%. As of September 29, this indicator declined to 15.8%, but it is still a high level for an altcoin.
Other on-chain metrics also confirm the growth in demand for the coin over the past few weeks. The indicator of the ratio of the market and realized value of the coin is near the mark of -4%, which indicates that most of the investors who bought the coin are at a loss. Comparing this indicator with a sharp increase in the number of addresses with a large number of LINK/USD, we can conclude that the cryptocurrency is becoming a long-term investment with great potential.
At the same time, another on-chain metric, displaying a unique number of addresses in contact with the altcoin network, indicates a huge gap between the current value of the crypto and the number of users. The indicator has been at a local low since November 2020, and this is due to the screening out of the retail audience due to the collapse of prices and the growth of market volatility. It is also worth considering that the formation of such divergences is an indicator of the growth of the institutionalization of the coin, which has already been confirmed above.
The technical analysis of altcoin suggests that the coin is in a local crisis due to the general mood of the market. On the daily chart, the coin has formed two bearish candles for the last two days and also completed forming a bearish triangle from September 7. The main indicators of the coin have started to recover and are moving up, which may mean a local reversal. But to do this, it is necessary to work out a bearish triangle, and then rise.
The stochastic indicator formed a bullish intersection and began moving towards the 40 mark, and the RSI index has already broken this level and continues to grow. At the same time, the MACD continues to move sideways with hints of a reversal. If the price on the charts does not start to gradually rise in the near future, then this may mean the formation of a bearish divergence.
In general, the sharp interest of institutions in cryptocurrency cannot be accidental, and buying more than 3% of the market supply indicates the long-term prospects of the coin. The on-chain metrics of Chainlink altcoin indicate an increase in the number of holders and growing institutionalization. In addition, the crypt ecosystem tied to ETH will continue to develop due to the versatility and broad capabilities of Ethereum. Considering the current quotes of this altcoin, now is the ideal time to acquire an asset with medium or long-term prospects.
