Main navigation

Chainlink Becomes Profitable as Token Surges by 31%

News
Wed, 01/05/2022 - 08:40
article image
Arman Shirinyan
Chainlink's profitability rises as the token's price suddenly jumps after reaching a local bottom
Chainlink Becomes Profitable as Token Surges by 31%
Cover image via stock.adobe.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News
Contents

As the cryptocurrency market faces a slight recovery after celebrating the New Year and weekend, some tokens like Chainlink are showing a strong recovery with 31% growth in the last five days.

The asset becomes profitable again

After the 50% correction started back in November, the majority of the Chainlink network was holding the asset at a loss. After a short-term pump of the token, the Realized Profit/Loss ratio on the network flipped, with the majority of traders on the network holding LINK at a profit.

The same data is being confirmed by an indicator from another on-chain data provide, IntoTheBlock, with 57% of Chainlink holders profiting from their positions. At press time, only 32% of investors holding LINK were at a loss, and 12% are breaking even.

The network's Profit and Loss ratio is sometimes used by traders to determine the current conditions of the market similar to the RSI indicator. Whenever a large portion is profiting, traders tend to avoid entering a token or a coin. Whenever the majority decides to take profit, the market might be hit with unexpected volatility.

Link's market performance

According to data from TradingView, Chainlink has entered another growth stage by gaining 31% in the last five days. Previously, Link lost approximately 50% of its value and bottomed out in the middle of December.

Related
Ethereum "Killers" Avax and Sol Down 20%

In the long-term perspective, Chainlink is moving in the rangebound formed back in September 2021. During the period of movement within the range, Link has reached the $35 zone two times and then retraced for an average of 45% twice.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.