Chainlink was part of the top ten tokens bought by Ethereum whales
On-chain data, however, went against the accumulation statistics
Chain link [LINK] became one of the top 10 purchased tokens by the top 1000 Ethereum [ETH] whales, according to a Dec. 10 tweet by WhaleStats.
According to the whale tracking platform, Chiliz [CHZ] also broke into the group in the last 24 hours. But the arrival of LINK was special. This was because it made the list despite underperforming during the week.
— WhaleStats (crypto whale tracking) (@WhaleStats) December 10, 2022
Read Chain links [LINK] Price prediction 2023-2024
Fall to your knees
CoinMarketCaps data showed that LINK was trading at $6.92 at the time of writing. This value represented a decrease of 5.84% in the past seven days, also placing LINK at its lowest value in the past three weeks.
Due to the drop, LINK fell by market cap – after falling out Dogecoin [DOGE] in the weekly performance of the top 20 cryptocurrencies.
However, there have been some notable events related to Chainlink’s on-chain condition, some of which contributed to its recent uptake. According to Glassnode, LINKs Herfindahl index rose to 0.00418 during the rally, but fell to 0.00393 at time of writing.
The Herfindahl Index serves as a measure of weighted address balances within a network. It also displays the feed concentration. Since LINK’s Herfindahl index reflected a low value, this implied relatively evenly distributed addresses, while supply was sparsely concentrated.
Also highlighted was the status of the dormant circulation. On-chain platform Santiment showed that LINK’s 90-day dormant circulation was 10,900. Before its current value, it improved to millions. So most of the Chainlink tokens held during the period resist involvement in transactions or spending.
The used coin age group shared a similar sentiment with the dormant circulation. At the time of writing, the age range for coins issued from LINK dropped to 87,000. This metric showed the number of tokens available relative to the tokens spent within a given interval.
Since it represented a truncated value, it explained that LINK investors have been issuing more tokens than they have held in a more recent time frame. So this could indicate that the weekly drop in value could be related to selling pressure.
Chainlink: waiting for signs and wonders
In the future, LINK may be teased minimal market peaks. This was due to indications revealed by the Network Value to Transactions (NVT) signal. At the time of writing, Chainlink’s NVT signal was down to 35:30.
In such a position, LINK exhibited features of its utility that exceed its value. Therefore, it may not be the right time to start re-accumulation.
This post LINK hits three-week low, but whale behavior could force traders…
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