Investment Disclaimer:
- I am not a registered investment, legal, or tax adviser or a broker/dealer, and all opinions expressed by me are from my research for educational purposes only.
- Past performance presented here is not an indicator of future performance.
- This post expresses my own opinion about the cryptocurrency mentioned herein and is not an offer to buy or sell, or a solicitation of any offer to buy or sell the cryptocurrency mentioned in this post.
Announcement from Quantdoge
If you are actively following my blog- Daily Crypto Risk Report, I sincerely thank you for taking the time to read my analysis, and your support is greatly appreciated. To further improve the quality of my daily analysis, I am actively making constant enhancements here and there.
I am pleased to announce that Quantdoge would be adding the Community Analytics section which you could find below in this article, where this section would look at how the community of particular cryptocurrency fares over time.
In the meanwhile, Quantdoge is working hard on Developer Analytics and On-Chain Analytics features which would be gradually released over this month. Please stay tuned.
1. Top 3 Good News for LINK HODLERS !!!
- MATIC, SOLANA, CHAINLINK: This makes it likely that these 3 alts will make this price movement
Statistic as of 2021-06-01 10:45 AM EDT: 46 positive votes, 0 negative vote
The altcoin recovery is well on its way, and top altcoins like MATIC, SOL, LINK made a comeback. MATIC’s price was up 36%, SOL was up 22% and LINK’s price was up 23.9%, respectively in the past 24 hours. Since these altcoins have recovered faster than most others, there is an increase in social volume […]
(Extracted from CryptoPanic) -
Chainlink joins Hedera council in push to link DeFi with traditional finance
Statistic as of 2021-06-01 10:45 AM EDT: 4 positive votes, 0 negative vote
Chainlink, a data oracle, has joined the Hedera Governing Council, which oversees the distributed governance of the Hedera network, an enterprise-grade public network for the decentralized economy.
(Extracted from CryptoPanic) -
This Crypto Subsector Coming for Banks and Fintech, Says Chainlink Founder Sergey Nazarov
Statistic as of 2021-06-01 10:45 AM EDT: 4 positive votes, 0 negative vote
The CEO of Chainlink Labs Sergey Nazarov is saying the nascent decentralized finance (DeFi) space could emerge as a primary competitor of banks and financial technology (fintech) firms. In a roundtable discussion at the LendIt Fintech Conference, the co-founder of the oracle solutions provider says that DeFi is not going away and will likely capture […]
(Extracted from CryptoPanic)
2. How Chainlink Performs Relative to Other Cryptos ?
As of 01 Jun 2021, Chainlink has made a cumulative return of 1761.47% since Jan 2020 and 269.27% since Jan 2021. It is currently the 12th greatest performing crypto asset since Jan 2021 as compared to the other cryptocurrencies presented above.
3. Technical Analysis on Chainlink
3.1. Volume Weighted Average Price (VWAP)
VWAP is a technical indicator used by a trader to gauge the overall trend of an asset price movement. VWAP line (orange line) represents the volume-weighted average price (average price here is defined as the average of high, low and close prices) while close price line (blue line) represents the price when LINK is closed at the end of every single day.
Whenever blue line (close price) is above orange line (VWAP), it indicates that the asset is gaining momentum and being traded higher than its average price level. This would represent a 'buy' opportunity for short-term momentum trader whom task is to trade following the trend while a longer term mean-revision trader might take it as a 'sell' opportunity, anticipating that the price of LINK (blue line) to fall to its average level (orange line).
Whenever blue line (close price) is below orange line (VWAP), it indicates that the asset is losing momentum and being traded lower than its average price level. This would represent a 'sell' opportunity for short-term momentum trader whom task is to trade following the trend while a longer term mean-revision trader might take it as a 'buy' opportunity, anticipating that the price of LINK (blue line) to rise to its average level (orange line).
As of 01 Jun 2021, VWAP is suggesting that LINK is trading near its volume-weighted average price range at USD 30 to USD 35.
3.2. Moving Average Convergence Divergence (MACD)
MACD is often used by trader as a momentum indicator. There are 2 lines that form the above charts, namely MACD (12, 26) lines and Signal(9) line, while the histogram is calculated by subtracting Signal (9) from MACD (12,26). Histogram would fall to the negative territory whenever MACD (12, 26) is trending at a lower level than Signal (9) and rise to the positive territory whenever MACD (12,26) is trending at a higher level than Signal (9).
MACD (12, 26) is computed by subtracting the 26-day exponential moving average (EMA) of LINK closing price from its 12-day EMA.
Signal (9) on the other hand is calculated as the 9-day EMA of MACD (12,26).
As MACD (12, 26) goes higher away from Signal (9), it signifies that LINK is gaining momentum and whenever it goes trends at a lower level than Signal (9),it signifies that LINK is losing momentum.
As of 01 Jun 2021, MACD is suggesting that LINK is gaining momentum.
3.3. Bollinger Band
Bollinger band is often being used by mean-reversion trader as a gauge to assess how undervalued or overvalued an asset is. Its chart made up of 4 lines, namely:
- SMA (20) (blue line), which is the 20-day simple moving average price of LINK
- Upper Band (orange line), which is computed by adding 2 standard deviations of LINK on SMA (20)
- Lower Band (red line) , which is computed by subtracting 2 standard deviations of LINK from SMA (20)
- Close (green line), which is the daily closing price of LINK
Whenever close line (green) touches the lower band (red), it indicates that LINK is corrected too much and is being traded at an undervalued level, representing a 'buy' opportunity. On the other hand, whenever close line (green) touches the upper band (orange), it indicates that LINK is gaining too much momentum and is being traded at an overvalued level, thus indicating a 'sell' opportunity.
As of 01 Jun 2021, Bollinger Band is suggesting that LINK is trading near its fair value level (i.e. neither overbought nor oversold).
3.4. Relative Strength Index (RSI)
Just like Bollinger Band, Relative Strength Index is often being used by mean-reversion trader as a gauge to assess how undervalued or overvalued an asset is. There are 2 psychological levels, i.e. 30 and 70 in RSI. Whenever the RSI reaches 30, it indicates that LINK is corrected too much and is being traded at an undervalued level, representing a 'buy' opportunity. On the other hand, whenever RSI reaches 70, it indicates that LINK is gaining too much momentum and is being traded at an overvalued level, thus indicating a 'sell' opportunity.
As of 01 Jun 2021, RSI is suggesting that LINK is trading near its fair value level (i.e. neither overbought nor oversold).
Based on the technical analysis presented above, quantdoge holds a neutral stance on the short-term price action of LINK token, but I could be wrong, hence please make your careful due diligence before making any financial decision.
4. Chainlink Risk Profile
Based on the 100-day 95% historical Value-at-Risk (VaR) profile of Chainlink defined above, LINK seems to trade at a lower risk level on 01 Jun 2021 as compared to 10 days before on 22 May 2021, with its biggest pullback being seen at - 48.43% on a single day during the last 100 days. However, I could be wrong, hence please make your careful due diligence before making any financial decision.
5. Price Simulation for Chainlink
How did quantdoge simulation perform vs the actual LINK price movement over the last week ?
Over the last 7 days, LINK has been trading above the 75-th percentile price range of quantdoge simulations, indicating that LINK was trading at an overbought (i.e. overvalued) level last week.
6. LINK Community Analytics
Number of LINK Followers In The Past 24 Months
During the past 24 months, Chainlink followers have grown 2404.36 % from 13,915 to 348,481 on Twitter and grown 725.85 % from 7,146 to 59,015 on Reddit.
Monthly increment of Chainlink Twitter followers peaked on Jun 2021 and its monthly increment of Reddit followers peaked on Jun 2021.
Number of LINK Followers In The Last 30 Days
In the last 30 days alone, Chainlink followers have grown 33.34 % from 261,346 to 348,481 on Twitter and grown 14.14 % from 51,702 to 59,015 on Reddit.
Daily increment of Chainlink Twitter followers peaked on 13 May 2021 and its daily increment of Reddit followers peaked on 05 May 2021.
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