Main to remember
Why is the chain faced with high sales pressure?
A whale sold 700,000 links worth $ 15.52 million, undergoing a loss of $ 2.7 million, reporting low market confidence.
What does the data on the chain suggest for the next Link movement?
Active addresses and transactions have plunged, reflecting the low network demand. If this trend continues, Link could decrease to $ 20.3.
After faced a rejection at $ 23.1, ChainLink (Link) experienced intense downward pressure, lowering for four consecutive days. To date, Chainlink was negotiated at $ 22.1, marking a 3.74% drop in daily cards.
In the middle of this market ventilation, whales panicked and started selling at a loss.
Punctual liaison whales are loss of loss
Interestingly, after Link rebounded a week ago, the holders jumped on the market to withdraw money. As such, the sellers dominated the market during last week, as evidenced by the MCVs of Spot Taker.
Source: cryptocurrency
This metric held the red for seven consecutive days, signaling the domination of the seller, which indicates that most of the orders executed are those which sell.
One of these sales orders was reported by chain lenses. According to the chain instructor, a whale has filed a link of 700,000, worth 15.52 million dollars, in Binance.
Source: chain lens
After this deposit, the whale recorded a loss of $ 2.76 million. Usually, when a whale decides to sell at a loss, it signals a lack of confidence on the market, a clear bearish signal.
Historically, the increase in sales activity, in particular whales, preceded low prices, driven by downward pressure.
Retail investors join the race
In addition to whales, small investors have also aggressively closed their positions.
According to Coanyze, ChainLink recorded a negative purchase of SELL DELTA for seven consecutive days. On October 6, Altcoin saw 1.77 million sales volume, compared to 1.25 million in volume of purchase.
Source: Coanyze
Consequently, he recorded a negative purchase of SELL DELTA of -523.7K, a clear sign of the sale of aggressive points.
In addition, the exchange activity also echoes this sales trend. According to Cryptochant, ChainLink recorded a positive Netflow exchange for two consecutive days.
Source: cryptocurrency
At the time of the press, Netflow was 136,000 liaison tokens, signaling an increase in the exchange deposit, validating more our previous observation.
The collapses of chain demand
In addition to the drop in demand on the free market, Chainlink chain activities have dropped considerably.
According to Cryptochant, the number of active addresses in Altcoin has decreased at a weekly 6K rhythm. Often, the drop in active users signals fewer unique participants interacting with the network.
Source: cryptocurrency
At the same time, total transactions also increased from 432.7K to only 18K, more validating reduced user activity.
Source: cryptocurrency
When the two drop in tandem, this indicates a lower demand for networks and could strengthen the bossaise if it is extended.
Is Link more losses?
According to Ambcrypto’s analysis, ChainLink recently decreased, as part of an increasing sale pressure and lower use of the networks.
These market conditions position the link for more losses if they persist. Therefore, if the bears continue to dominate, Link will violate the support of $ 22 and the fall at $ 20.3.
Conversely, if the feeling of the market moves with the exhausted sellers, a rebound will see Chainlink recover $ 23.1 and target resistance of $ 24.9.
