After charting gains from Nov. to Dec., the LINK price has now started to move in the downward direction. However, some key on-chain changes taking place on Chainlink might probe prices in a different direction.
LINK Exchange Inflows Dominate
At press time, LINK traded at $6.98, down 4.05% on the daily chart. As the LINK price lost the $7 support/resistance mark, some old LINK holders were tempted to move their bags.
Age Consumed Indicator for Chainlink highlighted that over 495 million LINK tokens were moved in just one day. The Age Consumed indicator shows the number of tokens changing addresses on a certain date, multiplied by the time since they last moved.
On Dec. 6, around 497.3 million tokens were moved, and the continuous movement of old tokens often leads to market volatility. However, with Age Consumed spikes reducing, lower market volatility can be expected in the near future.
Furthermore, LINK also saw higher exchange inflows of around 176,000. A sustained rise in inflows can be attributed to the fall in price from Dec. 1 onwards.
Chainlink Whales’ Skepticism Returns
A Dec. 5 update from Santiment suggested that Chainlink’s shark and whale addresses holding between 1,000 to 1 million LINK have gone on an unprecedented surge of accumulation. These wallets had added a collective 26.8 million LINK worth $194.3 million in just two months, a 12.8% increase of coins to their bags.
However, some short-term changes in LINK whale behaviors could affect price momentum. The aforementioned whale and shark cohort reduced their cumulative holding by almost nine million LINK in just the last three days. The same can point towards some profit-taking in the market by this cohort.
With this shark and whale cohort dumping after the LINK pump, another rally could lead to a re-emergence of this cohort.
Largest Cohort Accumulated Eight Million LINK
However, a look at the largest LINK whale cohort showed that they accumulated around eight million LINK, thus reversing the effects of 1,000 to 1 million LINK holders. With LINK whale and shark cohorts fighting to keep price action alive, the Chainlink price seemed to be at a crossroads.
Going forward, for LINK bulls, it would be crucial to maintain the price above the $6.76 mark according to In/Out of Money Around Price Indicator.
At the $6.76 mark, 14,350 addresses held over 281 million LINK tokens. If bulls are able to keep the price above this level, price action can remain in safe territory.
However, with the current market momentum in place, a pullback could be expected. The In/Out of Money Around Price suggests major support for LINK prices until the $6.30 mark.
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BeinCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.