Chainlink Defies Weakened On-Chain Activity with Steady Price

Chainlink's recent rally has been met with a sharp decline in on-chain activity. According to Artemis data, Transaction Count fell from 5.2 million to 386,600, marking its lowest level this year.

This drop in network activity poses a risk to demand for the token, but LINK's price has yet to follow suit. The altcoin has continued to hold firm, rising by 3.36% over the past day.

The Accumulation/Distribution indicator suggests that buyers have been absorbing supply during this recovery, indicating continued accumulation. This is a bullish sign, but LINK still needs to stay above $8.69 to maintain its technical structure.

However, a liquidity cluster near $8.10 has sparked concerns of a potential downside risk. If LINK's price were to drop into this zone, it could attract price and potentially lead to further declines.