- Chainlink’s FX supply ratio gradually reached its highest level in a month as portfolio profitability increased.
- Open interest also hit its highest level since April
November brought significant gains for most altcoins, including Chain link (LINK)with the crypto trading at $18.63 at press time. In fact, after gaining around 5% in the last 24 hours alone, LINK’s monthly gains have now exceeded 52% on the charts.
These gains appear to have boosted profit-taking activities, which is also evidenced by the increase in the FX supply rate. Data from CryptoQuant revealed a gradual increase in this metric to a monthly high of 0.161.
(Source: CryptoQuant)
When this ratio increases, it indicates an increase in the number of LINK tokens sent to exchanges – a sign of increasing pressure on the sell side. This may be a bearish sign, especially if there is no surge in buying activity to absorb the coins being sold.
Here it is worth emphasizing that the increase in the exchange supply rate coincided with an increase in portfolio profitability. According to IntoTheBlock, 64% of LINK holders are now making profits – a significant jump from 36% in early November.
At the same time, losing portfolios fell from 59% to 29%.
(Source: In the block)
Increasing portfolio profitability can also be beneficial for the price, as it can lead to positive market sentiment.
However, for LINK to continue its uptrend, it needs an increase in buying activity.
Chainlink Price Analysis – Are Buyers Active?
Chainlink’s four-hour chart revealed that buying pressure has been greater than selling pressure. This is evidenced by the Chaikin Money Flow (CMF) indicator which had a positive value of 0.02. The CMF was also leaning north, suggesting more buyers have entered the market recently.
The Moving Average Convergence Divergence (MACD) line also created a buy signal after crossing the signal line. If the MACD line continues to rise above the Signal line, it could strengthen the altcoin’s uptrend.
(Source: Tradingview)
If buyers manage to push LINK past the resistance level at $19, the token could target $20.75. However, Chainlink has been repeatedly rejected at this support level, and larger buying volumes are required to support a breakout.
At press time, the number of active addresses suggested that purchase volumes were low. According to In the blockthese addresses fell almost 50% in one week, from 7,420 to 4,210. New addresses also decreased, from 2,650 to 1,530.
Open interest nears 8-month high
Also in the derivatives market, Chainlink has seen a surge in activity. In. In fact, Open Interest (OI) has reached its highest level in over seven months.
(Source: Coinglass)
LINK’s OI, at press time, stood at $396 million – an indication that derivatives traders are opening new positions in the altcoin.
Chainlink’s funding rates also increased, highlighting that most of the newly opened positions were from long traders betting on more gains.
