Chainlink Faces Potential Further Declines After Recent Sell Signals and Increased Selling Pressure

  • Chainlink (LINK) is experiencing significant selling pressure, leading to abrupt price declines amidst a surge in network activity.

  • Despite a notable rise in daily active addresses and transaction volume, LINK’s price has dropped by over 12% in just 24 hours, reflecting investor concerns.

  • According to crypto analyst Ali Martinez, Chainlink’s TD sequential indicator has flagged a sell signal, suggesting potential further declines in value.

This article analyzes the recent developments affecting Chainlink’s price amid heightened network activity, highlighting key factors influencing investor sentiment.

Chainlink Faces Increased Selling Pressure Amid Rising Network Activity

Chainlink (LINK) has been in the spotlight recently due to an increase in its network activity. IntoTheBlock reported that the token averaged 8.22k daily active addresses, marking a stunning 142% growth compared to the previous month. This surge indicates rising adoption and heightened interest in the platform.

However, this growing network engagement has not translated into price stability for LINK. Instead, the token has seen a sharp decline, with a drop exceeding 12% in the last 24 hours, now trading at approximately $22.89. Such a price correction has pushed around 156k LINK addresses “out of the money,” representing over 22% of the total addresses associated with LINK, as reported by IntoTheBlock.

A pivotal factor contributing to this decline was identified by crypto analyst Ali Martinez, who noticed a bearish trend with Chainlink’s TD sequential indicator signaling a sell opportunity.

LINK's sell signal

Source: X

Future Expectations for Chainlink: Navigating the Uncertain Waters

Following the recent price fluctuations, COINOTAG’s evaluation of Santiment data indicates that investors have begun to respond to the sell signal by offloading their LINK holdings. Notably, the supply of LINK on exchanges has surged, while the amount held off exchanges has notably declined. This shift signifies heightened selling pressure, mirroring overall bearish sentiment in the market.

The upward trend in Chainlink’s exchange inflow further corroborates this notion as investors seek liquidity. Santiment later reported that large-scale investors—referred to as “whales”—have deposited LINK valued at over $25 million into centralized exchanges in recent days. This behavior suggests a potential loss of confidence in the token, further contributing to downward pressure on its price.

Selling pressure on LINK increased

Source: Santiment

Market sentiment appears bearish at the moment. The fear and greed index currently stands at 38%, indicating that the market is experiencing a phase of “fear.” Such low morale can often lead to potential reversals; however, it also contributes to the prevailing selling momentum we’ve seen recently.

For investors, the critical level to watch is the $20.66 support. If LINK breaks through this level, continued declines may follow. Conversely, should the bulls manage to take control, a recovery will require overcoming the resistance at $24.3, where liquidation levels could spike as increasing shorts may trigger short-term price retracements.

Conclusion

In summary, while Chainlink has experienced a significant uptick in network activity, the token’s price is currently under pressure from heightened selling activity and investor sentiment. The potential for further declines looms large, especially with large wallets positioning themselves towards selling rather than holding. Investors should stay vigilant for key support and resistance levels that may dictate LINK’s next movement in this volatile crypto landscape.

BREAKING NEWS

Solana Top Wallet Delivers 2650x Return: $221 Invested Turns into $586K as Solana Market Value Reaches $17M

COINOTAG News, citing GMGN data, reports that the Solana...

Ethereum (ETH) Leads Global Liquidations With $12.29M Largest ETH-USD Liquidation and $407M in 24 Hours

As of October 21, COINOTAG News, citing Coinglass data,...

Ethereum (ETH) Inflow: 7,889 ETH Worth $31.41M Deposited from CEX in 8 Hours

COINOTAG News Update indicates a significant on-chain move on...

Ethereum (ETH) 25x Long Hits $10M as QCP Capital-Funded Trader Boosts Position on HyperLiquid

According to OnchainLens, the wallet labeled 'buddy' and linked...

Andrew Kang’s Address Faces Unrealized Loss as Bitcoin (BTC) Short Position Surges to 362.49 BTC

In a crypto market update, monitoring data indicates Andrew...

House of Doge Acquires Stake in Italian Club to Advance Dogecoin Adoption

The Dogecoin Foundation's commercial arm, House of...

Asia’s Stablecoin Strategies Diverge: Japan’s Banks Eye Yen-Pegged Coin Amid Regional Shifts

Asia's stablecoin competition is intensifying as Japan's banks plan...

Ethereum Fund Holdings Surge 145%, Yet Bearish Signals Hint at Correction

Ethereum ETF flows recorded mixed results last week, with...

ECB’s Nagel Warns Damaging Trust in Statistics Could Undermine European Monetary Policy

ECB independence safeguards monetary policy credibility and anchors expectations,...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img