- SNX fell 8% in the last 24 hours and the indicators were bearish.
- Whales bought LINK as the price rose over 15% last week.
The crypto market has been behaving strangely lately as some cryptos managed to paint their charts green while the rest bled red. Among the winners, Chain link [LINK] was among the assets that have soared in recent days. While LINK investors rejoiced, Synthetic [SNX] whales lost confidence in the token.
Read Chainlink’s [LINK] Price prediction 2023-24
The selling pressure on Synthetix is high
Lookonchain’s recent tweet highlighted that a whale was dumping its SNX holdings. According to the tweet, a whale sold more than 2 million SNX, worth about $4 million, on Binance at a loss of almost $785,000.
The whale had spent 4.9 million USDT to purchase the SNX tokens at a price of $2.44 on May 18, 2023.
One whale dumped 2,015,264 whales $SNX ($4 million) op #Binance with a loss of ~$785K an hour ago.
The whale spent 4.9 million $USDT to buy 2,015,264 $SNX at a price of $2.44 on May 18.https://t.co/ADsVsNcCYb pic.twitter.com/TtJhyNanWZ
— Lookonchain (@lookonchain) September 23, 2023
This episode clearly suggested that whales were losing confidence in Synthetix as they expected the token’s price to drop in the coming days.
In fact, the decline has already begun, as in the last 24 hours alone the price of the token fell by almost 8%. The downtrend was accompanied by a more than 100% increase in SNX trading volume, further legitimizing the price drop.
According to CoinMarketCapAt the time of writing, SNX was trading at $1.98 with a market cap of over $534 million. A look at the token’s daily chart provided a better understanding of what was going on.
Most market indicators supported the sellers as the MACD showed a bearish crossover, which could spell trouble in the coming days. Not only that, but SNX‘s Chaikin Money Flow (CMF) fell sharply.
The Relative Strength Index (RSI) also remained below the neutral level of 50, further increasing the likelihood of a sustained price decline. Nevertheless, Synthetix’s Money Flow Index (MFI) provided some much-needed hope as it registered a slight increase on August 24, 2023.
Source: TradingView
Chainlink steals the spotlight
Interestingly, while the aforementioned whale sold SNX, he then bought LINK, expecting the token’s price to rise further. According to Lookonchain’s tweet, after the sale of Synthetix, the whale bought 569,907 CLUTCHworth $4 million.
This whale has been sold $SNX and then bought 569,907 $LINK ($4M) back.
This whale spent $1.41 million to buy 174,138 $LINK earlier and sold for $1.18M, at a loss of ~227K.https://t.co/U6ZQRBHB4J pic.twitter.com/NB4BzIPB3h
— Lookonchain (@lookonchain) September 23, 2023
Interestingly, other major players also increased their LINK holdings. This was evident from the Whalestats report. facts, which showed that LINK ranked tenth on the list of cryptos that the top 100 ETH whales bought in the last 24 hours.
In fact, whale activity around LINK has been high as the number of whale transactions increased over the past seven days. The supply of LINK on the exchanges decreased last week, while the supply outside the exchanges increased.
Source: Santiment
This clearly meant that buying pressure on LINK was high, which could result in a further price increase. According to CoinMarketCapLINK’s price had already risen by more than 15% in the past seven days, along with a significant increase in trading volume.
At the time of writing, LINK was trading at $7.13 with a market cap of over $3.9 billion.
Chainlink’s earnings growth could last longer as several of its on-chain metrics looked bullish on the token. For example, LINK’s MVRV ratio rose sharply last week.
Realistic or not, here it is LINK market cap in BTC‘s conditions
Network growth was also high, meaning more new addresses were created to transfer the token. Moreover, CLUTCH demand also remained in the derivatives market, as evidenced by the green Binance funding rate.
Source: Santiment
CryptoQuant also showed some concerns facts as it showed that both the Relative Strength Index (RSI) and LINK’s stochastic index were in overbought positions. This could increase selling pressure in the coming days, putting an end to LINK’s bull rally.