Chainlink has recently found itself in a massive amount of success, managing to set a new all-time high for its LINK prices. The current cost of a LINK token stands at $5.6. Even with the investor optimism around the altcoin, however, it seems that big investors are gearing toward a dump to profit from this massive high
A Massive Bull Run
Over the past 24 hours, Chainlink has seen an estimated $200 million injected into its network. This significant increase in buying pressure within the altcoin has seen a mid-march high of almost $5 into support. With the upswing coming along nicely, the FOMO effect came into full swing, and investors pushed up the price of a LINK token all the way to its new all-time high of $5.60
Technically speaking, this decentralized oracles token is still in price discovery mode. Even so, a Fibonacci retracement indicator has helped identify potential resistance levels of the coins. With this technical index as a reference, it’s expected that the next level of resistance LINK could face is if it continues to rise up to 127.2% and 161.8% Fibonacci retracement levels. To put it in perspective, it’s expected that the potential areas of retracement sit at about $6 and $7, respectively.
Massive Amounts Of LINK Being Moved
Even with the latest price action going incredibly bullish, Glassnode has revealed some troubling data for the coin’s price. It seems that the data analytics firm has concluded that some investors have already seen this upswing coming, and are gearing to profit from this in a big way.
This resulted in a daily net transfer volume into the exchange of more than $16 million USD worth of $LINK – the largest we've seen so far.
— glassnode (@glassnode) July 5, 2020
The on-chain intelligence and data platform has reported a massive spike in the number of tokens that have been transferred to various crypto exchanges. When you look at just the 4th of July’s numbers, there were approximately 4,900 transfers made to various crypto exchanges of the world. When you crunch the numbers, the amount of LINK transferred is just shy of 4 million in total. These transactions have been recorded as the highest volume of coins that had ever been sent to crypto exchanges across the entire three-year history of the Chainlink network.
Possible Warnings Of Dump Happening
The holder distribution chart of Santiment has made it clear that most of these transfers come from addresses that hold anywhere between 100 to 1,000 LINK tokens. The number of wallet holders within this bracket managed to tumble down by 10%, with nearly 2% of holders containing 1,000 to 10,000 LINK disappearing as well.
As it stands now, there’s a significant downward price pressure brewing with all these tokens sitting across all these crypto exchanges. Should these market participants decide to dump these tokens to investors unprepared for it, the selling action could gain greater momentum, and cause the price for LINK to crumble.