Chainlink receives fresh attention from whales, but here’s a problem

  • Gas spent and the daily wallets with 1+ LINK were on a declining trend, at press time. 
  • Metrics showed signs of recovery, but LINK’s price action was bearish. 

Chainlink [LINK] has been witnessing a constant decline in its number of holders lately. Dune’s data revealed that the daily number of wallets with 1+ LINK has been on a declining trend for months. 

And as per, gas spent on the chain has also gone down, suggesting less usage of the Chainlink network. 

Source: Dune

How much are 1,10,100 LINKs worth today

Can LINK regain users? 

While the number of users on the network declined, whales still preferred LINK over the rest of the cryptocurrencies.

Consider this- LINK recently flipped Shiba Inu [SHIB] to become the most traded token among the top 500 Ethereum [ETH] whales.

Additionally, LINK has also been stepping up its efforts to increase adoption, which can play a role in attracting new users to the network.

One of the latest ones was the integration with SteakHut, which has equipped Chainlink Automation to support automated liquidity management.

The official announcement mentioned that SteakHut decided to use Chainlink Automation to monitor the state of smart contracts and perform advanced liquidity management on-chain because it is the most reliable Web3 automation service. 

As per Santiment, LINK’s network growth remained relatively high, indicating that a larger number of new accounts were used to transfer the token. The velocity also followed a similar trend, which too suggested high network activity.

However, negative sentiments around LINK were dominant in the market. Well, this can cause trouble for LINK since investors’ faith seems to be dwindling. 

Source: Santiment

LINK is feeling the heat

Though there were signs of recovery on the network front, LINK’s price action aligned with the sellers’ interests. According to CoinMarketCap, the price of LINK dropped by more than 3% in the last 24 hours, and it was trading at $7.13, at the time of writing.

Nonetheless, much like network activity, LINK’s on-chain metrics gave hope for better days.

For instance, LINK’s supply on exchanges declined while its supply outside of exchanges went up.

Furthermore, LINK’s demand in the derivatives market also remained high, as suggested by its Binance funding rate. This might help LINK change its price trajectory in the coming days.

Source: Santiment

Realistic or not, here’s LINK market cap in BTC‘s terms

More selling pressure soon? 

Meanwhile, LINK’s daily chart revealed that the sellers might soon increase their pressure. At press time, LINK’s Money Flow Index (MFI) was in the overbought zone. In fact, the coin’s Relative Strength Index (RSI) also registered a downtick, which was a development in the bear’s favor.

However, its Exponential Moving Average (EMA) Ribbon displayed a slight bullish crossover. The MACD supported EMA readings.

However, the entry of selling forces in the near term can’t be ruled out. 

Source: TradingView

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