Have you noticed the significant uptick in the value of Chainlink [LINK] recently? The cryptocurrency’s supply link spiked 20% time within a short span of two months, marking the third instance of such a considerable price movement. This exceptional price trajectory has impacted other metrics associated with LINK, leading to some interesting market dynamics.
A Closer Look at Chainlink’s Price Surge
Chainlink has demonstrated an impressive defiance against broader market trends, charting its unique course. An analysis of its daily timeframe chart reveals that it recently experienced another significant double-digit price surge. On November 8th, it registered a 14.33% increase, closing nearly at $15. Despite venturing into overbought territory, Chainlink’s price maintained above $14, with its Relative Strength Index (RSI) surpassing 80, indicating a strong bull trend.
Impact on Chainlink’s Dormant Supply
This recent price trend has stirred previously inactive wallets into action and incited whales to enhance their accumulation. Data from Santiment shows a leveling out of the average age of Chainlink tokens in wallets, suggesting that previously dormant whale tokens are re-entering the market. This trend has led to an increased supply of LINK tokens in circulation, and a boost in trade volume.
Interestingly, while dormant coins are becoming active, some whales have escalated their accumulation efforts. Wallets holding between 10,000 to 10 million LINK tokens now hold over 38% of the supply. A closer look reveals that these wallets have acquired 4.7% of the total supply within the past five months.
Profitability of Chainlink’s Recent Price Trend
Chainlink’s recent price trend has proven to be highly profitable, especially for holders over the past 30 days. An examination of the 30-day Market Value to Realized Value ratio (MVRV) for LINK showed a substantial figure of around 27%. This indicates that LINK holders for the last 30 days are currently reaping a profit of over 26%. However, the MVRV and the RSI signal the potential for a price correction in the near future.
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