Chainlink Signal Resurfaces: Is Another 31% Rally Coming?
November 29 2023 - 2:00PM
NEWSBTC
On-chain data shows that a Chainlink signal that last preceded a
31% rally for the asset’s price has just reversed. Chainlink Age
Consumed Metric Has Observed A Sharp Spike Recently According to
data from the on-chain analytics firm Santiment, LINK has recently
seen a significant movement from old coins. The relevant indicator
here is the “Age Consumed,” which tells us whether the dormant
Chainlink tokens are on the move or not right now. When the
indicator’s value registers a large spike, it’s a sign that the
blockchain is currently observing the transfer of a significant
number of old coins. Such dormant tokens belong to a cohort called
the “long-term holders” (LTHs), made up of the relentless hands of
the sector. Related Reading: XRP, BNB Among Altcoins Losing
Correlation With Bitcoin: Data As such, this metric surging can be
something to watch out for, as it means that these LTHs, who
usually remain quiet no matter what’s going on in the wider market,
have decided to break their dormancy. Now, here is a chart that
shows the trend in the Chainlink Age Consumed over the last few
months: The value of the metric appears to have shot up recently |
Source: Santiment on X As displayed in the above graph, the
Chainlink Age Consumed indicator has observed a sharp rise
recently, implying that the LTHs have been making transactions. At
the peak of this latest spike, the metric’s value touched 4.28
billion, which is the highest level seen since the middle of
September. Back then, the indicator registered a spike almost
double in scale, and interestingly, what followed in the next
couple of weeks was a 31% rally as LINK went from $6.36 to $8.22.
It’s hard to say if a similar pattern would repeat for Chainlink
this time since the LTHs could have broken their silence for
several reasons, including for selling. An analyst has pointed out
that yesterday (which was about the same time as this spike in the
Age Consumed), the whales made many transactions, as the chart
below shows. Looks like the metric has spiked up | Source:
@ali_charts on X In total, the Chainlink network observed 2,600
transactions valued over $100,000 yesterday. The spike would
confirm that the LTHs who broke their dormancy weren’t just
ordinary investors but the whales. Related Reading: Dogecoin To
Double Its Price If This Barrier Breaks, Analyst Predicts In
isolation, it’s hard to say why these two indicators recently
observed a spike. Still, when looking at the latest LINK news,
perhaps the most likely explanation becomes apparent. Yesterday,
Chainlink staking v0.2 went live on the Ethereum blockchain,
allowing the v0.1 stakers to migrate toward the new network. Thus,
given the close timing of the spikes in the Age Consumed and Whale
Transaction Count, it would appear quite probable that these LTHs
were making transfers toward the new staking pools. LINK Price
Chainlink had observed some drawdown towards the $13.7 mark just
recently, but it would seem like the asset has already recovered as
it’s now trading around $14.7. LINK has already recovered from its
recent lows | Source: LINKUSD on TradingView Featured image from
iStock.com, charts from TradingView.com, Santiment.net
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