- Chainlink’s exchange offer ratio gradually rose to a one-month high as portfolio profitability rose
- Open interest also rose to the highest level since April
November delivered significant gains for most altcoins, including Chain link (LINK)with the crypto trading at $18.63 at the time of writing. After posting gains of around 5% in the last 24 hours alone, LINK’s monthly gains are now over 52% on the charts.
These gains appear to have fueled profit-taking activity, with the same highlighted by the rising exchange rate supply ratio. Data from CryptoQuant revealed a gradual increase in this metric to a monthly high of 0.161.
(Source: CryptoQuant)
When this ratio rises, it indicates an increase in the number of LINK tokens being sent to exchanges – a sign of increasing pressure on the sell side. This could be a bearish sign, especially if there is no increase in buying activity to absorb the coins sold.
Here it is worth pointing out that the increase in the exchange offer ratio coincided with the rising profitability of the wallet. According to IntoTheBlock, 64% of LINK holders are now making profits – a significant jump from 36% to early November.
At the same time, portfolios with losses fell from 59% to 29%.
(Source: IntoTheBlock)
Rising wallet profitability can also be good for the price as it can lead to positive market sentiment.
However, for LINK to continue its upward trend, it needs a strong increase in buying activity.
Chainlink Price Analysis – Are Buyers Active?
Chainlink’s four-hour chart shows that buying pressure has been greater than selling pressure. This was evident from the Chaikin Money Flow (CMF) indicator, which had a positive value of 0.02. The CMF also tilted north, indicating that more buyers have entered the market recently.
The Moving Average Convergence Divergence (MACD) line also created a buy signal after crossing above the signal line. If the MACD line continues to rise above the signal line, it could strengthen the altcoin’s bullish trend.
(Source: Handelsview)
If buyers manage to push LINK past the $19 resistance level, the token could target $20.75. However, Chainlink has been rejected at this support level several times as higher buying volumes were needed to support a breakout.
At the time of writing, the number of active addresses suggested that purchasing volumes were low. According to InTheBlokthese addresses fell by almost 50% in one week from 7,420 to 4,210. The number of new addresses also fell from 2,650 to 1,530.
Open interest is approaching an eight-month high
Chainlink has also seen a strong increase in activity in the derivatives market. In. In fact, Open Interest (OI) rose to the highest level in more than seven months.
(Source: Mint Glass)
LINK’s OI stood at $396 million at the time of writing – an indication that derivatives traders are opening new positions on the altcoin.
Chainlink’s funding rates also rose sharply, highlighting that most of the newly opened positions came from long traders betting on more profits.