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On-chain activity for ChainLink (LINK) shows signs of bearish sentiment as the asset dips once again. Many investors appear to be either taking profits or trying to offset losses.
After a strong performance in September, during which ChainLink surged from $9 to $13, the cryptocurrency market at large remained in a downtrend. The token started October with a sharp pullback, falling to around the $10 level. Although LINK attempted to recover in the following weeks, on-chain indicators are now signaling a potential further downturn.
Data from IntoTheBlock reveals that the number of ChainLink daily active addresses in profit rose significantly over the past week, climbing from 155 to 600 as the token briefly surpassed the $12 mark. This increase in active profitable addresses suggests that more holders may be looking to take profits, potentially putting downward pressure on the price.
A surge in ChainLink’s Daily Active Addresses (DAA) in profit suggests that some investors may be looking to take profits amid the asset’s high price volatility.
Despite the recent price surge, the number of DAAs in loss also increased, rising from 222 on October 20 to 263 on October 22. This indicates that some long-term holders may be trying to offset their losses, further suggesting a potential selloff in the near term.
In both cases, the bullish momentum that drove LINK’s recent price action could face resistance as investors lock in profits or attempt to minimize losses.
Additionally, whale activity appears to be ramping up. According to IntoTheBlock data, whale transactions involving at least $100,000 worth of LINK jumped from 54 on October 19 to 134 on October 22, totaling $361 million in transaction volume over the past week. Such spikes in whale activity and trading volume are often associated with increased price volatility.
At the time of writing, ChainLink (LINK) is trading at $11.78, down 1.75% in the past 24 hours. The asset’s market cap is currently $7.38 billion, with a daily trading volume of $320 million. As increased whale transactions and trading volume typically lead to heightened price fluctuations, LINK could see significant volatility in the near term.
