Summary
TLDR: Chainlink (LINK) price may face obstacles and potential corrections as key indicators point towards a possible downtrend. Daily active addresses for LINK have been declining, signaling reduced interest. The Average Directional Index (ADX) reaching 30 suggests a strong downward trend. A death cross in the EMA lines on April 1 further supports the potential downtrend, with a drop to $16.2 possible if support levels fail. However, if an uptrend occurs, LINK’s price could rebound to $20.7 or even $22.
Key Points
1. Chainlink (LINK) price might encounter obstacles as key indicators point towards potential corrections on the horizon. After a period of relative stability, LINK’s daily active addresses have started to decline, indicating a possible reduction in interest. Additionally, LINK’s Average Directional Index reaching 30 signals a strong and potentially sustained trend for the week ahead.
2. Concerns are further amplified by the formation of a death cross in the EMA lines on April 1, suggesting an impending downtrend that could lead to further corrections in the LINK price.
3. Examining Chainlink’s daily active addresses provides essential insights into the cryptocurrency’s market dynamics. Initially, during the first three weeks of March, LINK’s daily active addresses remained stable, fluctuating between 4,700 and 4,900. However, a shift began on March 20, with a noticeable decline from March 21 to March 25, where the LINK’s daily active addresses fell from 4,407 to 3,826. Following a short period of stability from March 25 to March 30, the beginning of April saw another decrease, with daily active addresses dropping from 3,856 to 3,627. This ongoing decline in daily active addresses could signal waning interest in Chainlink, potentially leading to adverse effects on its price.