Chainlink Drops by 64% In 5 Months, LINK Holders Unfazed: They Are Rapidly Accumulating
06 Agosto 2024 - 6:00PM
NEWSBTC
Yesterday, August 5, LINK, the native currency of Chainlink, a
decentralized Oracle provider, plunged to a six-month low. Changing
hands at around $8, LINK fell by 64% from March highs, breaking out
from a bull flag, signaling weakness. The correction was across the
board, and leading altcoins like Solana and Cardano also posted
sharp losses. LINK Holders Accumulating, Outflows From Exchanges
Spike However, as the markets bled, breaking below key support
levels, smart investors saw this as an opportunity to accumulate.
According to IntoTheBlock data on August 6, yesterday, there was a
marked increase in the number of active LINK addresses, rising to
levels not seen in roughly three months. Related Reading: UNI Price
Bounces Back 13% Above $5.6, Can Bulls Maintain Control? The uptick
in active addresses coincided with a spike in outflows from
exchanges. This development suggests that users were more keen to
accumulate LINK, not sell, despite falling asset prices. Outflows
from centralized exchanges like Binance and Coinbase are usually
considered net positive. With users controlling coins via their
non-custodial wallets, they can’t readily sell for other liquid
coins or stablecoins. Over the years, prices tend to recover
steadily afterward whenever there is extreme fear, especially among
LINK holders. Like the events of March 2020, when crypto prices
flash crashed due to a COVID-19-led collapse, aggressive investors
can consider such drops an opportunity to buy. In March 2020, LINK
fell by a whopping 70%. However, months later, as the money
printers were powered on, crypto prices rose, lifting LINK by
nearly 35X at its 2021 peak. Similar to what happened then, the
drop in prices coupled with outflows from exchanges and
accumulation among entities makes it likely that LINK will bounce
back strongly. Most Holders Are In Red, But Partners Are Interested
In Chainlink Solutions So far, IntoTheBlock data reveals that 65%
of LINK holders are in losses, and only 32% are in green.
Encouragingly, though, most LINK holders are “diamond hands” and
have been holding their stash for over a year. The more long-term
holders or addresses holding the coin or token for over 155 days,
the more resilient prices are in the wave of liquidation. Besides
price action, optimism is high among LINK holders. Chainlink is a
leading decentralized oracle provider offering services to DeFi and
NFT protocols. Related Reading: Helium (HNT) Stays Afloat With 31%
Gains Amid Crypto Market Mayhem At the same time, Chainlink Labs,
the middleware developer, continues to strike quality partnerships.
Recently, 21Shares integrated Chainlink’s Proof-of-Reserve on
Ethereum to enhance transparency. Feature image from DALLE, chart
from TradingView
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