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- Transactions on the Chainlink network boomed, and retail wasn’t the main driver.
- LINK traders were bearish on the price action amid extreme volatility.
Chain link [LINK], one of the most popular altcoins at the moment, caught the attention of institutional investors on October 13. According to on-chain analyst and trader Ali Martinez, there were more than 20 million LINK transactions, worth more than $50 million, among this cohort on the said date.
#Chain link | The total transaction volume per $LINK whales and institutional players increases significantly. These big players traded for more than 20 million #CLUTCH yesterday valued at nearly $150 million. pic.twitter.com/3Ky0dhXkCf
— Ali (@ali_charts) October 14, 2023
Read Chainlink’s [LINK] Price prediction 2023-2024
Watch the price action
Typically, large transactions like this mean an increase in speculation surrounding a cryptocurrency. However, in most cases, the increase is not evidence that the value of the said asset would increase immediately increase.
While there is a chance that these whales are preparing for a possible rally, LINK is also showing signs that it is on an upward trajectory. At the time of writing, LINK was valued at $7.37, thanks to a 20% increase in the past 30 days.
However, it appears that much of the market was bearish on LINK at the time of writing. On several occasions there has been talk of an impressive performance by LINK in the short to medium term.
But most believe that a retracement in the token value is needed for the rally to get underway.
This was also evident from the Weighted sentiment. At the time of writing, Chainlink’s weighted sentiment was -0.872. Weighted Sentiment measures the unique social volume related to an asset.
Source: Santiment
Still bearish on LINK
So the weighted sentiment is in the negative region, meaning there were more expectations on the downside than on the upside. A look at the Binance Funding Rate also showed that traders shared a similar sentiment.
Financing fees are periodic payments between long-positioned traders and short-positioned traders. This rate also represents the difference between the perpetual futures market price and the index price.
When the financing rate is positive, it means that the traders are optimistic about the price action. At the time of writing, funding rates had fallen into negative territory, meaning there were more shorts than longs in the market.
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If we look at the price volatility, data on the chain showed that the metric was 0.02. Even though the metric had decreased, the token still had a lot of volatility. This metric is usually defined by the daily percentage change in the asset’s price.
Source: Santiment
So there is a chance that there will be many price fluctuations around the average price. Should buying pressure increase, LINK could reach $8. On the other hand, if sellers continue to dominate, the token value could fall below $7.
