Chainlink price eyes compelling gains with bullish on-chain metrics
- Chainlink observed the largest spike in whale transactions in 2023, early on Tuesday.
- LINK noted over 2,600 transactions exceeding $100,000 in a single day.
- Chainlink recorded the largest movement of dormant LINK tokens, since September 15, supporting a bullish thesis.
Chainlink price climbed nearly 11% in the past week, amidst bullish catalysts. Whale activity, and declining on-chain metrics such as Supply on Exchanges, support gains in LINK price. Chainlink is trading at $14.71 on Binance, yielding nearly 2% daily gains.
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Chainlink price gains supported by on-chain metrics
Chainlink witnessed the largest spike in whale transactions, seen in 2023, on November 28. Based on data from crypto intelligence tracker Santiment, whale transactions valued at $100,000 and higher, hit 2,620 on Tuesday.
As seen in previous instances in the last six months, large spikes in whale transactions are followed by a rally in LINK price, and a local top within 2-3 days of the rise in whale activity. This occurred on July 20, October 23 and November 9. While the count of whale transactions exceeding $100,000 and higher was relatively low when compared to November 28, it was followed by a rally in LINK price within a 2-3 day timeframe.
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Whale Transaction Count (>$100,000) in LINK
LINK Supply on Exchanges (as a % of the total supply) has declined from 17.22% on September 15 to 15.04% on November 28. This reflects negative flows on exchanges, as LINK leaves exchange platforms, reducing the selling pressure on Chainlink.
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Chainlink Supply on Exchanges (as % of total supply) and Exchange Flow Balance
Based on data from Santiment, Chainlink has observed its largest movement in dormant tokens for 11 weeks. Santiment analysts correlate spikes in the movement of dormant tokens, or ‘Age Consumed’ levels, with price rises in LINK. After the September 15 spike where 8.34 billion dormant link tokens moved, price climbed nearly 31% within a two week period.
As seen in the chart below, on November 28, 4.28 billion dormant LINK tokens moved, paving way for Chainlink gains.
Chainlink dormant token movement
These on-chain metrics support LINK price gains. At the time of writing, LINK is trading at $14.71, up 2% in the last 24 hours.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
