Chainlink price at risk of further decline as 200 largest addresses sit on unrealized profits


  • Chainlink ecosystem’s 200 largest wallet addresses scooped up 40.18 million LINK tokens in October. 
  • Large wallet investors accumulated LINK at $7.40, the altcoin’s price has nearly doubled in the past month. 
  • LINK price is at risk of correcting lower with bearish divergence in on-chain metrics. 

Chainlink price is in an uptrend that started in September. LINK price rallied nearly 60% in the last 30 days, before beginning its recent pullback. LINK price is down 2% on the day, there is a likelihood of further decline in the altcoin’s price, in the near term. 

Also read: Ripple price eyes 10% rally with institutions pouring capital in XRP funds

Chainlink large wallet addresses could shed their holdings

Chainlink’s 200 largest wallet contain 40.18 million LINK tokens, worth $570.15 million at the current price ($14.19 per LINK token) on October 17, according to Santiment data. The crypto intelligence tracker noted that post the accumulation by LINK whales, the asset’s price rallied 125% within a 25-day timeframe, pushing the price from $7.40 to $14.60, a 94.6% gain. 

While LINK price nearly doubled, the wallets holding Chainlink tokens have yet to shed their holdings or engage in profit taking. The LINK token balance of these wallet addresses has remained high since October 17, pointing to an increased chance of a profit-taking event in the near future. When LINK whales shed their holdings and book unrealized profits, the selling pressure on Chainlink could push the asset’s price lower. 

Chainlink whales sit on unrealized profits

Chainlink whales sit on unrealized profits

On-chain metrics, Active Addresses and Network Realized Profit/Loss, support the bearish scenario. While LINK price nearly doubled in a 25-day timeframe, active addresses did not climb accordingly, revealing an underlying bearish divergence in LINK. 

LINK

LINK Active Addresses and price 

The Network Realized Profit/Loss metric that notes whether market participants selling the asset are realizing profits or realizing losses, supports the bearish thesis. LINK holders have engaged in profit-taking, represented by the spikes in the chart below. Profit-taking activities are typically followed by a correction in the asset’s price, suggesting the possibility of more downside. 

LINK price and network realized profit/loss

LINK price and Network Realized Profit/Loss 

The exchange flow balance, a metric that notes the netflow from cryptocurrency exchange platforms and the supply on exchanges as a % of total supply, are used to identify whether there is incoming selling pressure on the asset. This helps determine the likely direction of the price trend. In the case of LINK, on the monthly time frame, there are large inflows, the volume of Chainlink token inflows is higher than outflows, as seen in the chart below.

At the same time, the supply on exchanges increased to 15.29% of the total supply, as on Tuesday. LINK tokens are flowing into exchanges, consistently, contributing to the rise in the % of total supply across exchange platforms, this points at a brewing selling pressure on the asset. If the inflow of LINK to exchanges continues, it could result in a decline in the asset’s price. 

LINK

Chainlink supply on exchanges and exchange flow balance

At the time of writing, LINK price is $14.08 on Binance, the asset is down 2% on the day.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin, Ethereum and XRP defend key support on sixth day of Israel-Iran war, what to expect

Bitcoin, Ethereum and XRP defend key support on sixth day of Israel-Iran war, what to expect

Bitcoin (BTC), Ethereum (ETH), and XRP are holding steady above key support levels. The top three cryptocurrencies have weathered the geopolitical tension and macroeconomic events of the past week. 

Top Meme Coins Price Prediction: Dogecoin, Shiba Inu, Pepe set to extend losses

Top Meme Coins Price Prediction: Dogecoin, Shiba Inu, Pepe set to extend losses

Top meme coins extend recent losses on Wednesday, with the segment’s market capitalization standing at $54.41 billion, a decline of over 20% in the past month. Dogecoin (DOGE) and Shiba Inu (SHIB) are down 3% so far this week.

Crypto Today: Bitcoin, Ethereum, XRP weather geopolitical tensions, risk-off sentiment ahead of Fed rate decision 

Crypto Today: Bitcoin, Ethereum, XRP weather geopolitical tensions, risk-off sentiment ahead of Fed rate decision 

The cryptocurrency market is broadly consolidating amid ongoing geopolitical tensions in the Middle East. Bitcoin (BTC) mirrors the lethargic sentiment, trading at around $104,572 at the time of writing on Wednesday.

Stellar and ApeCoin Price Prediction: XLM and APE at risk of further losses as technical weakness grows

Stellar and ApeCoin Price Prediction: XLM and APE at risk of further losses as technical weakness grows

Stellar price closes below its critical support at $0.2537, hinting at a correction ahead. ApeCoin touches the lower boundary of an ascending triangle formation, a breakdown would signal a downtrend.

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle

Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

BTC

ETH

XRP