How Chainlink's price spike is affecting its supply

Chainlink: A Look at Recent Price Trends and Metrics

As a Journalist, I have been closely following the recent upward trajectory of Chainlink (LINK) and its impact on the cryptocurrency market. Let’s take a closer look at the recent price movements of LINK and how it has affected various metrics.

Chainlink Spikes Yet Again

A closer look at Chainlink’s daily timeframe chart reveals that the cryptocurrency recently experienced another notable double-digit price surge. On November 8th, it gained 14.33% in value, closing at nearly $15. This marked the third occurrence of such a substantial price movement within a span of less than two months.

Despite spending some time in the overbought territory, the recent upswing pushed it even further into overbought conditions. This was indicated by its Relative Strength Index (RSI) surpassing 80. At the time of this update, it was trading with a minor loss of approximately 2%, yet it still maintained a price point above $14. The RSI’s positioning underscored a robust bull trend.

Furthermore, this latest price trend has prompted previously inactive wallets to become active and encouraged whales to augment their accumulation.

Chainlink’s Dormant Supply Becomes Active

According to Santiment’s chart analysis, there has been a recent trend where the average age of Chainlink tokens in wallets has started to level out. This development suggests that previously dormant whale tokens are re-entering the market.

The current price trend has been impressive enough to motivate long-term token holders to release their holdings. This action by the whales will result in an increased supply of LINK tokens in circulation and boost trade volume.

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Additionally, the Santiment chart revealed that while dormant coins are becoming active, certain whales have also escalated their accumulation efforts. Wallets holding between 10,000 to 10 million LINK tokens now hold over 38% of the supply. Furthermore, a deeper examination showed that these wallets have acquired 4.7% of the total supply within the past five months.

LINK’s 30-day MVRV Screams Massive Profit

The recent price trend of Chainlink has been notably favorable and profitable, particularly for holders over the past 30 days. An examination of the 30-day Market Value to Realized Value ratio (MVRV) for LINK revealed a substantial figure. At the time of this analysis, the MVRV was around 27%, suggesting that LINK holders for the last 30 days are currently enjoying a profit of over 26%. However, the MVRV and the RSI signal the potential for a price correction in the near future.

In conclusion, it is evident that Chainlink’s recent price movements have had a significant impact on various metrics, encouraging previously inactive wallets to become active, and prompting whales to accumulate more tokens. This has created an environment of substantial profit for LINK holders in the last 30 days, with potential signals of a price correction on the horizon. As we continue to track the progress of Chainlink, it will be interesting to see how these metrics evolve in response to future price movements.

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By Team