Journalist
Posted:
- Chainlink was up by over 4% in the last 24 hours, but its trading volume dropped.
- Market indicators suggested a few slow-moving days.
Chainlink’s [LINK] price registered a promising uptick in the last 24 hours, which hinted at a further bull rally.
However, the table might turn against the token’s favor in the near term as a whale chose to sell LINK tokens worth millions of dollars. AMBCrypto then took a better look at LINK’s metrics to see whether there were any signals of an increase in sales pressure.
Is Chainlink under selling pressure?
Lookonchain’s recent tweet revealed interesting whale activity, pointing out a sell-off.
As per the tweet, a whale was selling LINK at a loss to repay the debt on Aave. The whale bought 237,054 LINK, which was worth nearly $3.55 million between 10th November 2023, and 2nd December 2023 at $14.96.
It then sold 165,083 LINK, worth over $2.33 million at $14.15.
A whale is selling $LINK at a loss to repay the debt on #Aave.
The whale bought 237,054 $LINK($3.55M) between Nov 10 and Dec 2 at $14.96, then sold 165,083 $LINK($2.33M) at $14.15 in the past 4 hours.
And currently has 71,979 $LINK ($1.02M) left, with a total loss of ~$190K. pic.twitter.com/D1qVmfHCMA
— Lookonchain (@lookonchain) December 13, 2023
This was a clear sell-off, which generally initiates a larger sell-off as retail investors tend to follow what whales do. However, this episode did not have an immediate negative impact on LINK’s price, as it rallied by over 4% in the last 24 hours.
At the time of writing, Chainlink was trading at $14.68 with a market capitalization of over $8.1 billion. But the bad news was that while LINK’s price surged, its trading volume dropped.
Hence, AMBCrypto had a look at LINK’s supply distribution to see whether selling pressure was rising. As per our findings, LINK’s supply on exchanges and outside of exchanges was closely knit. This meant that investors were reluctant to trade the token.
Additionally, its exchange outflow also dropped in the recent past, further proving the aforementioned point.
Source: Santiment
It was interesting to note that while the token’s social volume remained stable, its weighted sentiment dropped, meaning that negative sentiment was dominant in the market around LINK.
This can be expected from Chainlink
A possible reason for LINK’s price uptrend despite less buying pressure could be its latest integration with zkSync Era.
As per the latest tweet, zkEVM Ethereum L2 scaling solution zksync is joining Chainlink SCALE to enable the creation of secure, scalable, feature-rich dApps.
zkEVM Ethereum L2 scaling solution @zksync is joining #Chainlink SCALE to enable the creation of secure, scalable, feature-rich dApps by giving developers enhanced access to essential @chainlink services like Price Feeds, which are now live on zkSync Era. https://t.co/7TxG6oSlg4
— Chainlink Today (@ChainlinkToday) December 12, 2023
However, since buying pressure was low, AMBCrypto then examined LINK’s daily chart to understand whether LINK’s uptrend would last. As per our analysis, LINK’s MACD displayed a bearish crossover despite the recent uptrend.
Read Chainlink’s [LINK] Price Prediction 2023-24
It was interesting to note that, if not a price correction, the chances of a few slow-moving days were high.
This was evident from the fact that both Chainlink’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) took a sideways path in the recent past.
Source: TradingView
