Chainlink social dominance hits six-month peak as LINK extends gains

Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday. Despite the price increase and rising talk about the token, on-chain data suggests that LINK holders have started taking profits, a sign of possible increasing selling pressure ahead.  

Chainlink dominates social media discussions

Data from crypto intelligence tracker Santiment shows that Chainlink hit a six-month peak in the social dominance metric, a sign that the token dominates crypto-related discussions on social media platforms. 

The social dominance metric gauges the number of discussions involving a specific asset across social media platforms and gives a score that compares the number of posts that discuss an asset against the top 100 cryptocurrencies. 

The social dominance score for LINK is at 1.55%, meaning that nearly 2% of the discussions across social media platforms are related to the token. This is the highest level of dominance seen so far in 2024.  

The increasing talk about Chainlink could be a consequence of its recent rally. The token has posted gains for three consecutive sessions and trades around $16.60 on Binance, the highest level since April 12. LINK price has increased by 22% this week. 

LINK social dominance 

This recent price rise, however, could be about to lose momentum. Data from the on-chain activity tracker Lookonchain shows that LINK holders have started taking profits on Friday.

A trader tracked by Lookonchain sold 117,440 LINK holdings, worth $1.84 million and taking a profit of $205,800. It is important to note that profit-taking has just started in LINK. Once it exceeds significant levels, it could indicate the likelihood of a price decline due to the increasing selling pressure. 

As of Friday, LINK holders have taken $2.26 million in profits, as seen on Santiment, by shedding their holdings.