Chainlink, one of the prominent cryptocurrencies in the market, has experienced a downward trend in recent months. Despite a 6% dip over the past week, there are indications that suggest potential hope for a turnaround. This blog post will delve into Chainlink’s decline, explore recent developments, and discuss their potential impact on the coin’s future.

In July, LINK witnessed a significant surge, reaching a high of $8.4. However, the asset failed to sustain its upward momentum and began a gradual descent. Over the past week, the price has dropped to $7.2. Visual representation through charts highlights LINK’s declining trend since its peak last month.

While a 6% loss may not be as severe as other top coins in the crypto sector, such as XRP and Litecoin, which have experienced 13% and 11% losses respectively, the continuous drawdown still raises concerns among Chainlink’s investors. The downtrend shows no signs of abating, prompting the question of whether a rebound is feasible in the near future.

Despite the prevailing challenges, noteworthy developments related to Chainlink have emerged, offering a glimmer of hope for its investors. In a recent post by Santiment, an on-chain analytics firm, two constructive indicators have been highlighted.

The first indicator, “development activity,” reflects the extent of work undertaken by Chainlink’s developers over the past month on its public GitHub repositories. The chart demonstrates a gradual increase in the metric, reaching high levels. This suggests that the cryptocurrency’s development team has been diligently working on enhancing the project. Such active development proves vital in determining the longevity and vibrancy of a cryptocurrency. In fact, the development activity of LINK ranks as one of the highest in the market, setting it apart as one of the most evolved projects.

The second indicator focuses on the supply held by wallets carrying balances between 100,000 and 10 million LINK, often known as “sharks” and “whales.” These substantial investors exert considerable influence in the market due to their significant holdings. Impressively, the supply held by these entities has surged, with a substantial investment of $192.2 million in LINK over the past four weeks. What truly stands out is that despite the cryptocurrency’s decline, these investors have not engaged in any net selling activity.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.