Chainlink (LINK) price falls
Over the past week, the price of the native token of the decentralized oracle network Chainlink (LINK) has fallen by more than 20%
Interestingly, amid the drop, the number of daily transactions with the altcoin has increased dramatically. Let's break down what this could mean.
Holders are moving Chainlink to exchanges
Onchain data shows that the number of daily transactions with LINK has increased by 18% over the past seven days. This is generally considered a positive signal, confirming an uptrend or hinting at a potential price increase.
A closer look at the figures shows that transfers between $100,000 and $1 million have soared 82% in the past month, while larger transactions in the $1 million to $10 million range are up 15%.
The price of LINK has fallen 37% on the back of increased activity by the big players. This means that the whales were gradually selling their assets. The growth of Chainlink token inflows to exchanges confirms this assumption.
LINK price forecast: the threat of a fall persists
As seen on the daily chart, the current Chaikin Money Flow (CMF) trend for LINK is downward and is below the zero mark at -0.23. A negative value indicates market weakness. It indicates that holders are exiting positions, contributing to the price decline.
If the trend continues, Chainlink could fall to $11.11, hitting the November 2023 low.
However, a change in market sentiment to bullish would see the token's price recover to $13.02.