Chainlink Selloff May Come After LINK Reaches New All Time High
According to new data from Santiment in the crypto news today, a Chainlink selloff is in the books and may come after the cryptocurrency reaches new ATH. For those of you who don’t know, Chainlink rallied another 4% today and maintained its place as the fifth largest cryptocurrency by market cap.
However, some investors are apparently doubtful on the potential rise. According to the on-chain analytics resource Santiment, the Chainlink investors may be “becoming increasingly uncertain in its prolonged rally.” In their report, Santiment said that a Chainlink selloff may come and LINK may soon correct.
Meanwhile, the number of LINK deposits into crypto exchanges reached an all time high (ATH) of 8.2 million, on the same day when the token reached an ATH price of roughly $15. LINK holders may be moving their tokens to exchanges in order to take profits as the last time an all time high for this metric was recorded was when the asset was at a price of $4.51, which was the highest at the time.
Santiment also said that the mean dollar invested age of LINK is “dipping in a big way,” potentially indicating that a Chainlink selloff may come soon. On August 13, they said that the number of daily active addresses was at 20,900, five days after the all time high of 22,600.
While $ETH received the majority of the limelight this Thursday, $LINK had a modest +4.4% return day. More importantly though, it nearly eclipsed an all-time high in daily active addresses with 20.8k, with the previous ATH hit… five days ago at 22.6k. https://t.co/OpOFQrIcz9 pic.twitter.com/xLKMCAkVth
— Santiment (@santimentfeed) August 14, 2020
Despite all of this, LINK has not slowed down. New investors like Dave Portnoy have positively affected the market. According to CoinMarketCap data, LINK hit a new all-time high today around $18.37 and now has a market cap of more than $6 billion.
In the Chainlink news, we can see that the price of the token has risen more than 124% in the last two weeks alone, going from $7.74 to $17.64 as of press time. Multiple factors have accounted for this, from the squeeze of short contracts to the most recent demand from yield farmers who tried to get their hands on YAM tokens before the token tanked.
Anyways, a Chainlink selloff may occur and is still in the books – especially if the momentum is lost and investors start selling off their LINK tokens. In a scenario like this, LINK will probably drop.