Chainlink Is Back On The Move, Is it Time to Sell LINK?
The 10th largest cryptocurrency by market cap of $2.58 billion has been enjoying gains for well over a year now. Chainlink has been performing “extremely well” since early 2019.
For the past few weeks, it has been making new highs, briefly surging to a new all-time high of $8.40 yesterday. This growth could be the result of small LINK marines.
During the price spike, the adjusted transfer value (7dma) has started to spike, surpassing the previous highs of 2020 but still way off mid-2019 all-time highs, according to Coin Metrics.
The majority of the additional activity seen on Chainlink is because of the significant increase in those addresses holding relatively small amounts of LINK, between 10 to 1,000 LINK. Coin Metrics noted,
“The distribution to these addresses seems to largely be coming from early Chainlink whales that hold >10K LINK.”
Besides the active addresses, transaction count has also been up in lockstep, which indicates that both the network usage and the number of users of the network have been growing. But now it looks like these hodlers have started to take off profits.
Since hitting new highs, the LINK price pulled back to under $7 at $6.96 today. In the past 24 hours, LINK has been down 2.75%.
A retracement of 9% has been expected after such a big move to the upside. And today, LINK is back to moving up, currently trading at $7.56, up 3.38% in the past hour.
Some believe LINK still has a lot of fuel left in it as trader Cole Garner said last week that LINK could yet again go parabolic after it broke the channel.
No reason for shorting $LINK on this 1000+ days channel breakout.
It's barely 2x in BTC since #altparty started.
I'd say you either join it or leave it alone. pic.twitter.com/CeSLM0ntfy
— Galaxy (@galaxyBTC) July 14, 2020
However, this move up might be the time to take off some profits as Garner now warns about the “off the charts” inflow of LINK to crypto exchanges.
“If you're selling, time to set your orders,” said the trader. “Expecting whales to try to exit pump price back up to 85k sats. Safe sell just below 80k sats. Aggressive sell just below 85k sats,” he said.
As we reported, recently, a LINK marine holding 12.5 LINK worth about $103 million transferred them to the Binance market sell wallet.
So, it’s to be seen if LINK will continue to do what it does best, keep on climbing up, or is it time to take a rest.