The devastation of the bear has finally reached LINK, and so severe that the Chainlink network’s suite of DeFi protocol integrations failed to save it. Meanwhile, the market stopped falling, but LINK has fallen below the safe zone.

SHORTCUT back to previous levels

At the time of writing, 63.68% of Chainlink’s 628,62,000 addresses are at a loss. This might not be a big deal as the entire market is losing money.

The steady price drop in the last 2 months is definitely the cause of this.

But when it comes to LINK, things are significantly worse as this is what investors have suffered the most for more than 3 years.

The last time the majority of investors lost money was in December 2018 when it hit 80.7%.

AmountsHa investment LINK loses money | Source: Intotheblock

Therefore, it is clear that the investors are very frustrated because their participation rate is decreasing across the network.

Daily active users used to peak at 15-16,000 on average and stayed above 3,000 through the end of December 2021. However, in the second half of January, that average dropped to 2.7k and is now at 2.2k.

number of places just works Above chain link | Source: Intotheblock

As a result, the number of on-chain transactions also dropped by 65% ​​over a 5-month period.

Number of on-chain transactions on Chainlink | Source: Intotheblock

While whales are known for being active players regardless of prevailing market conditions, LINK whales have also slowed for now. With trades worth less than $400 million in a month, it’s clear that LINK is playing by the bears’ rules at the moment.

Possibility of escape position?

LINK’s price action is a bit of a concern as it is expected to remain inside the wedge to the downside. Despite several attempts to break the long-term resistance, the price did not work with the bulls.

Fortunately, the price is still quite a way above the lower trendline at $13.3. Therefore, LINK has some room to recover and attempt another breakout. Eventually, when the token reaches a significant footprint, purchase demand will increase. This would also be a better time to decide to go long.

SHORTCUT still stuck in the wedge accordingly bearish | Source: TradingView

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