ChainLink could see another sell wave despite price fall

As a seasoned crypto investor with a knack for deciphering market trends and a portfolio that has weathered numerous bull and bear cycles, I find myself cautiously watching ChainLink (LINK) amidst its recent price movements. Having witnessed LINK’s impressive surge in September, I was hopeful for a sustained bullish momentum. However, the past week’s on-chain indicators have me slightly concerned.


The recent on-chain activity related to ChainLink appears to be suggesting a downturn, with the asset experiencing another dip. Some investors are either looking to cash out their gains or mitigate their losses at this point.

During September, ChainLink (LINK) showed a bullish trend, whereas the broader cryptocurrency market was in a bearish phase. Over the last three weeks of the month, its price climbed from $9 to $13. However, it began October with a steep decline, dropping back down to the $10 mark.

As LINK tried to recover over the past two weeks, on-chain indicators signal a potential downfall. 

Based on information from IntoTheBlock, there has been a significant increase in the number of Daily Active ChainLink addresses in profit. Over the past week, this figure climbed from 155 to 600 as the asset reached and exceeded the $12 price point.

An increase in an asset’s Daily Accumulation Average (DAA) indicating a profit suggests that some investors might be cashing out while experiencing high market volatility.

Over these last few days, as the crypto market has experienced a significant price increase, I’ve noticed an unsettling trend: the number of Distressed Asset Accounts (DAA) in the red has risen from 222 on October 20th to 263 on October 22nd. This upward trend could be indicative of some long-term holders taking steps to mitigate their losses.

In both cases, LINK’s bullish momentum could likely face a selloff.

Keep in mind, a widespread bullish trend might possibly lift ChainLink along with it.

According to ITB data, there was a significant increase in whale transactions involving LINK, with a value of at least $100,000. This number rose from 54 on October 19th to 134 by October 22nd. Over the past week, the cumulative total of these large transactions amounted to approximately $361 million.

Over the last 24 hours, LINK saw a drop of 1.75%. At this moment, it’s being traded at $11.78. The market capitalization stands at approximately $7.38 billion, and its daily trading volume amounts to around $320 million.

As the volume of trades rises and more “whale” transactions occur, it often leads to significant fluctuations in prices.

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2024-10-23 09:48