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.
- I do hold a long position in ChainLink as a token holder.
1A. 3 Top Good News for LINK HODLERS
- Former Google CEO Eric Schmidt Joins ChainLink Labs as Advisor
Statistic as of 2021-12-08 04:38 AM EDT: 7 positive votes, 0 negative vote
(Extracted from Crypto Panic) - Top Traders Are Accumulating Seven Altcoins Built on Ethereum, According to Crypto Whale Watcher
Statistic as of 2021-12-08 04:38 AM EDT: 6 positive votes, 0 negative vote
The largest crypto whales in the Ethereum ecosystem are utilizing the market dip to purchase more ETH, dollar-pegged stablecoins and seven additional altcoins running on the leading smart contract platform including ChainLink according to the crypto whale tracker WhaleStats.
(Extracted from Crypto Panic) - LINK Becomes Most Traded Token Among Ethereum Whales in Last 24 Hours
Statistic as of 2021-12-08 04:38 AM EDT: 6 positive votes, 0 negative vote
Though ChainLink fails to impress investors with strong price action, whales are still interested in trading it around.|
(Extracted from Crypto Panic)
2. How ChainLink Performs Relative to Other Cryptos ?
As of 07 Dec 2021, ChainLink has made a cumulative return of 1229.49% since Jan 2020 and 186.54% since Jan 2021. It is currently the 14th 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 07 Dec 2021, VWAP is suggesting that LINK is gaining momentum following the market dip.
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 07 Dec 2021, MACD is suggesting that LINK is gaining momentum following the market dip.
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 07 Dec 2021, Bollinger Band is suggesting that LINK has been oversold to an undervalued position.
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 07 Dec 2021, RSI is suggesting that LINK has been oversold to an undervalued position across all trading windows.
Based on the technical analysis presented above, quantdoge is bullish on LINK, 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 similar risk level on 07 Dec 2021 as compared to 10 days before on 27 Nov 2021, with its biggest pullback being seen at -21.29% 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. Monte Carlo Price Simulation for ChainLink
How did quantdoge simulation perform vs the actual LINK price movement over the last week ?
Over the last 7 days, ChainLink has fallen to the lower 25th percentile of quantdoge simulations, indicating that LINK was oversold.
6.LINK Community Analytics
Number of LINK Followers In The Last 30 Days
In the last 30 days alone, ChainLink followers have grown 8.97 % from 594,102 to 647,364 on Twitter and grown 2.77 % from 71,053 to 73,024 on Reddit.
Daily increment of ChainLink Twitter followers peaked on 10 Nov 2021 and its daily increment of Reddit followers peaked on 10 Nov 2021.
7. Google Trends Analytics
chainlink reached its peak in Google Search on 2021-05-02 with a Google Score of 72
Over the last quarter, chainlink Google Score has increased 13.64 % from 22.0 to 25.0
Over the last 6 months, chainlink Google Score has increased 29.87 % from 19.25 to 25.0
Based on Google searches, chianlink is most sought after in St. Helena, followed by Oman & Kuwait this month.
8. Developer Activities Analytics
Fork
Fork refers to the amount of time where the Github repo of current cryptocurrency is being copied. Higher fork number could mean that this cryptocurrency project is getting more interest in the developers community who likes to explore more on the deep technical of this project.
ChainLink forks increased 108.04% from 373 to 776 in the past year.
Star
Star refers to the number of developers who bookmark the Github repo of current cryptocurrency. Higher star number could mean that this cryptocurrency project is getting more general interest in the developers community.
ChainLink stars increased 90.34% from 1,377 to 2,621 in the past year.
Subscriber
Subscriber refers to developers who subscribed to the Github repo of current cryptocurrency. Higher subscriber number could mean that this cryptocurrency project is getting more general interest in the developers community.
ChainLink subscribers increased 22.84% from 197 to 242 in the past year.
Pull Request Contributor
Pull request contributor refers to developer who has made a successful improvements/ modifications on the Github repo of this currenct cryptocurrency project. Higher number of pull request contributors could mean that there is a high number of commitment given by developers to this cryptocurrency project.
ChainLink pull_request_contributors increased 45.61% from 57.0 to 83.0 in the past year.
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