Chainlink’s short sellers need to know this update to keep losses at bay

ambcrypto.com:

Chainlink’s price was seen to be declining over the past seven days, however, with Chainlink‘s new collaboration, things may take a turn for the better.

It announced acollaboration with zksync’s layer 2 environments to integrate their new price feeds.

Here’s AMBCrypto’s Price Prediction for Chainlink  for 2022-2023

These new integrations seem to have impacted Chainlink’s development activity. As can be observed from the image below, the development activity witnessed a massive surge over the past few weeks.

Source: Santiment

Investors who use the increase in development activity to decide whether to invest in a coin or a token could perceive this as a bullish sign.

However, despite Chainlink’s increasing collaborations and subsequent spikes in development activity, there were a lot of areas where Chainlink was underperforming.

In terms of network growth, Chainlink observed a sharp decline over the last week. This implies that the number of addresses transferring the LINK token decreased. Thus, indicating that the interest from new addresses reduced for Chainlink over the past week.

The MVRV ratio was also observed to be declining over the last seven days. Thereby, indicating a bearish short-term future for Chainlink.

Adding to that, Chainlink’s volume also saw a south journey, going from 510 million to 317 million in the past week. 

Source: Santiment

The bearish signals, however, don’t end here, according to Messari, the number of active addresses on the Chainlink network was observed to be plummeting.

As can be seen from the image below, the number of active addresses decreased since October and depreciated by 27.44% over the last seven days.

Furthermore, LINK’s volatility dipped and fell by 12.85% in the past week. Thereby,