Important points
Has the recent Chainlink partnership increased bullish sentiment on LINK?
No, this week it turned bearish on the price chart as Link lost key swing lows and support levels from August.
What do Link’s on-chain metrics show?
These reflect a decline in exchange reserves and a shift in CVD from bearish to neutral spot takers, neither of which has halted LINK’s downward trend yet.
wire mesh [LINK] was one of the tokens driving social media engagement. The Santiment Insights post covers Chainlink’s role as a multi-chain oracle network and how its multiple partnerships with large financial institutions have made headlines.
A partnership between Chainlink and Dinari, a leading provider of tokenized US equities, was announced on November 5th.
The goal was to make the S&P Digital Market 50 Index one of the first to verifiably operate on-chain. The index tracks 35 U.S.-listed companies and 15 leading digital assets that are driving blockchain adoption.
Another partnership between Chainlink and Tradeweb, a global operator of interest rate, credit, equity, and money market marketplaces, was announced on November 4 to publish Tradeweb FTSE U.S. Treasury benchmark closing prices on-chain via DataLink.
Despite a trend of partnerships with prominent TradFi institutions, demand for Chainlink’s native token LINK remained weak. Why did this happen?
Cues from on-chain indicators collide with Chainlink price action
Source: Santiment
Consistent with the rise in social media engagement we mentioned earlier, we observed higher than average social volume compared to the past two months. Additionally, weighted sentiment was bullish.
So, regardless of price trends, the overall picture remained encouraging for investors.
Source: CryptoQuant
Bullish confidence was also seen in the steady decline in LINK exchange reserves, a sign of accumulation. Spot-taker CVD, which measures which parts are aggressive and driving price movements, has flipped from bearish dominance to neutral.
This was also a noteworthy development as it sets the stage for a potential change in price trends.
Source: TradingView Link/USDT
A change in that trend has not yet arrived. On the contrary, the bearish structure strengthened on November 3rd. The stock ended the day below $15.44, its lowest since August, meaning the bears were firmly in control.
MACD highlighted the bearish momentum and OBV hit new lows alongside LINK price reflecting strong selling pressure.
If the current trajectory holds, a drop to $11 is expected. Investors should closely monitor news developments in parallel with price trends to inform the decision-making process.
For now, traders and investors should brace for further drawdowns.