With a price increase of 8% over the last seven days, Chainlink (LINK) is currently one of the best performers on the crypto market, behind Litecoin (LTC) and BNB. Remarkably, the trading volume of LINK has dropped 20% in the last 24 hours to just $389 million.
Chainlink was trading at $6.66 at press time, showing a restrained bounce from the bottom of a channel that LINK has been in since early May. The lower bound of the channel is at $5.35, while key resistance for the LINK price is currently at $9.52.
At the current price, LINK is hovering just below the 50-, 100-, and 200-day simple moving averages (SMAs). With an RSI of 49.5 in the 1-day chart, LINK is in neutral territory.
Chainlink (LINK) positioned in a channel, 1-day-chart. Source: TradingView
However, the bounce of the last three days should be taken with a grain of salt. On-chain data from Santiment shows that there has been a significant increase in exchange inflows following the recent price surge. Nearly 15 million LINK were transferred to known crypto exchange wallets in the last 24 hours.
Exchange inflows of Chainlink (LINK) spiked. Source: Twitter
In the 1-week chart LINK / BTC, the token is in a crucial moment: will LINK be able to break through the critical trendline resistance or will it be the fourth rejection in the last 13 months. As one analyst noted, this could be a “make it or break it” type moment for Chainlink.
Chainlink/Bitcoin facing a “make it or break it” moment, 1-week-chart. Source: Twitter
Fundamental Remains Strong For Chainlink (LINK)
As Chainlink faces a pivotal moment, the fundamentals seem stronger than ever. In about two weeks, Chainlink will launch its staking feature. Starting December 06 at 12pm ET, LINK owners and node operators will be able to earn rewards to increase the security of decentralized oracle services.
As a result of the announcement, the project has seen a striking increase in social engagement. However, Chainlink Economics 2.0 will not only introduce staking, but also improve access to Chainlink services and technical performance.
1/ The capabilities of #Chainlink oracle networks continue to expand to support more advanced data and compute services.
At the same time, the cost of oracle services continues to decline as a result of several key initiatives and industry trends: pic.twitter.com/accD4jiWFf
— Chainlink (@chainlink) November 23, 2022
Moreover, Chainlink is expanding its platform to include even more services, such as DECO for private transactions, FSS for MEV mitigation, and CCIP for cross-chain communication.
Using the Cross-Chain Interoperability Protocol (CCIP), thousands of applications across the Web3 space are expected to interact with each other, sending and receiving tokens, instructions, messages and more.
Just recently, crypto exchange Huobi announced that it is using Chainlink’s proof of reserve to help provide enhanced transparency around its wrapped HBTC token.
On November 18, the Binance chain team revealed that Chainlink’s oracles are essential for developers in the BNB chain ecosystem. Chainlink is the most widely used oracle solution on the BNB chain with more than 161 million data points delivered, over 230 dApp integrations, and more than $780 billion in value handled.
Shiba Inu Observes Highest Rise In Burn Rate – Is This Normal?
SHIB token burn rates are seemingly rising on the Shiba Inu network. The current number of Shiba Inu burn trackers is quite surprising. However, data shows it is due to the degenerative performance of the SHIB burning machine.
On-chain data shows that the SHIB burn rate observed a massive 1682.07% increase over the past 24 hours. That is the highest percentage rise in the burn rate on the SHIB network in the past few months.
Why Is SHIB Burn Rate Increasing?
In detail, the number of burnt tokens on the Shiba Inu network did not exceed 1 million SHIB on January 26. Yesterday’s amount was one of the lowest numbers of assets developers has burned on the network. So, the seeming spike in burn rate could be due to a default in the SHIB burning machine yesterday.
According to analysts, this percentage spike wasn’t triggered by increased network activity. Also, it didn’t represent a large number of actually burnt tokens.
Token burns help to reduce the number of coins in circulation. It helps increase an asset’s scarcity and possibly boost the token’s price when increased supply pushes it down.
For instance, on January 17, the SHIB token burn surged by 613% within 24 hours, and the coin broke the bearish traders’ expectations, rising above 20% on the day. However, a surge in price did not accompany the recent rise in the token burn rate.
Also, some SHIB whale activities indicate that top investors have lost faith in the meme coin as many whales keep moving chunks of Shiba Inu positions on exchanges.
— Whale Alert (@whale_alert) January 26, 2023
This could mean that short-term traders don’t believe the asset couldn’t rise above the resistance level, helping them earn profit.
New SHIB Whales Emerge – What’s Next?
While some whales sell off their tokens, a new address is buying the dip, accumulating large amounts of SHIB tokens, and maybe awaiting the next bull market. Data shows that a new crypto wallet became a Shiba Inu whale address on Thursday, January 26, 2022.
The new wallet became a whale address after receiving 3.3 billion SHIB worth about $38.9 million. Etherscan revealed that the sending address moved funds from different wallets before transferring the tokens to the receiver, now the newest SHIB whale. This move further confirms our suspicion that smaller investors are giving up their positions.
According to the blockchain whale tracker, Whale Alert, the wallet also received 1 billion PAW tokens a few minutes after sweeping the SHIB token. With the current balance, the new whale is now the world’s 30th-largest SHIB holder.
This recent accumulation came after the world’s 26th-largest SHIB holder swept 150 billion tokens into its wallet. The token sweep occurred through four transaction clusters within three hours on January 23.
So while short-term investors might be selling their positions due to falling SHIB prices, some could be accumulating in anticipation of future gains from the upcoming Shibarium launch.
Shiba Inu is currently trading at $0.00001188 with a 24-hour increase of 1.28% and a 7-day price surge of 0.2%. In addition, the meme coin has seen a 14-day price surge of 22.1% and a 30-day rally of 41.4%.
Featured Image From Pixabay Kevin_Y, Chart From Tradingview
AAVE Seeks Proposal To Clear Itself Of Bad Debt – Can It Overcome These Obstacles?
The lending platform AAVE has been enjoying positive news lately. According to reports, AAVE has passed a governance proposal that would eradicate all bad debt it accumulated when Avraham Eisenberg, orchestrator of the Mango Markets exploit, targeted the platform’s Ethereum V2 liquidity pool back in November 2022.
However, the governance token of the platform, AAVE, has not responded either positively or negatively. According to data from CoinGecko, the token registered losses in the daily and weekly time frames. But these losses are too miniscule to revert the token’s gains from the start of the year.
With the launch of AAVE’s V3 on its mainnet, the crypto might be in a position to tally new highs if the situation permits it.
The Gist Of The Proposal & On-Chain Developments
Based on the proposal, the token has over 2,677,749 units of CRV in debt on its Ethereum V2 CRV reserve. This is worth, at the date of the proposal, over $2.5 million. The proposal would use V2’s stablecoin reserve to buy the necessary number of units of CRV to pay the debt.
This obviously was accepted by the community positively, being implemented immediately by January 25th. This would reverse the damage of the exploit attempt, proving the liquidity of the protocol.
The deployment of AAVE’s V3 on Ethereum was also implemented. According to DefiLlama, the crypto is in the top 4 among all platforms. AAVE V3, the Ethereum pool deployment, has over $526.52 million total value locked.
At $86.02, What’s In Store For AAVE?
The token is currently consolidating around the $85.8 support range. This could be a sign that the token still has room to regain lost ground from 2022’s bear market. However, this can only be achieved if the token closes with a green candle to continue AAVE’s rally when the year started.
Investors and traders should target the token’s current resistance at $90.15. If the bulls can consolidate at the token’s present support, we can see an upward push towards $94.70.
Investors should also monitor the token’s correlation with Bitcoin and Ethereum as these would have a big influence on its price movement in the short to medium term.
As these major cryptocurrencies retest their crucial resistances, a breakthrough by either one or both of these coins would boost AAVE’s momentum to regain lost ground.
With this in mind, investors and traders should exercise caution in the short to medium term as the token can still be clawed by the bears to revert back to $78.65.
Featured image by Kanalcoin.com
Litecoin (LTC) Displays Consolidation – Can We Expect A Reversal Soon?
The Litecoin price has shown considerable recovery ever since it reached its bottom in December 2022. LTC secured almost 50% appreciation in January this year. Currently, however, the altcoin has witnessed a price pullback and is consolidating on its daily chart.
Over the last 24 hours, the Litecoin price moved down by 0.3%, which signified a range-bound movement. The altcoin also lost close to 3% of its market value. The technical outlook of Litecoin pointed towards bullish momentum as demand for the altcoin remained high on the daily chart.
Accumulation also reflected the same. Price noted a decline as LTC receded from the overbought zone. Buyers still have the upper hand on the chart.
A continued fall in accumulation will cause bears to secure Litecoin’s price action. That momentum would continue for the upcoming week, causing LTC to fall below its nearest support level. At the time of writing, LTC was trading 78% below its all-time high set in 2021.
Litecoin Price Analysis: One-Day Chart
LTC was trading at $88.11 at the time of writing. The coin has pierced through several resistance lines over the past several weeks but has failed to hold on to the momentum. LTC met with two rigid resistance levels before it started to move south again.
The two important resistance lines for the coin stood at $90 and $92. Immediate resistance stood at $90. If demand for the altcoin remains steady, then LTC might attempt to breach the $90 price mark.
On the flipside, the nearest support line for the Litecoin price stood at $86, and a continued price correction will force LTC to fall below the $86 price mark and settle at $82. The amount of LTC traded in the last session was red, indicating a fall in buyers.
The altcoin has been hovering in the overbought region for several weeks now, and at the moment there is a slight fall in demand for Litecoin. The Relative Strength Index stood a little below the 60-mark after it noted a recent downtick indicating that demand was shrinking.
A reading close to the 60-mark, however, signifies that buyers outnumbered sellers. In accordance with that, LTC price shot past the 20-Simple Moving Average (SMA) line as buyers were driving the price momentum in the market.
The coin was also above the 50-SMA (yellow) and 200-SMA (green) lines, indicating increased bullishness.
Concerning the fall in buying pressure, the LTC chart displayed a sell signal on the one-day chart. The Moving Average Convergence Divergence (MACD), which depicts market momentum, underwent a bearish crossover and formed red signal bars tied to sell signals.
This could also imply that the price will fall in the coming trading sessions. The Parabolic SAR, the indicator that reads the trend and change in price momentum, was still positive. The dotted lines were below the candlesticks, suggesting that the LTC price was still positive.
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