On September 1st, Santiment, a prominent cryptocurrency data analytics firm,highlightedan important development in the Chainlink (LINK) market. According to their analysis, Chainlink has reached a crucial level historically associated with a potential price rebound. However, this projection is contingent upon the overall stability of Bitcoin and the broader cryptocurrency sector.
🔗 #Chainlink has hit a key level that has historically foreshadowed a price rebound. Presuming #Bitcoin and the overall #crypto sector stays relatively stable, $LINK's drop in exchange supply (currently just 15.5%) is hinting at a #bullish divergence. https://t.co/2GnsaNRv0O pic.twitter.com/7X7b7p4hSr— Santiment (@santimentfeed) August 31, 2023
One key indicator that has caught the attention of market observers is Chainlink’s diminishing exchange supply, which currently stands at just 15.5%. This decline is being interpreted as a signal of a potential bullish divergence in the LINK market.
Nevertheless, not all analysts are on the same page regarding Chainlink’s immediate future. Analyst Aliweighedin on the situation with a contrasting viewpoint. Ali expressed skepticism, stating that whales, representing significant LINK holders, appear to be abstaining from active participation in the recent price correction. It could suggest that these large investors are biding their time, potentially expecting LINK’s price to drop further before considering accumulation.
Uncertainty Looms Over Chainlink Market
Ali further underscored the gravity of the situation by emphasizing the importance of the $5 support level for LINK. If LINK were to breach this critical support level, Ali cautioned that the cryptocurrency could face a substantial correction, possibly plummeting to $4 or even $3.
Drawing a comparison to a previous price correction in June, Ali pointed out a significant difference in whale behavior. During that earlier correction, whale transactions and their holdings had risen as LINK’s prices fell.
However, the current scenario presents a stark contrast, with whale transactions declining while their holdings remain relatively stable. This divergence in behavior has raised concerns among market participants as it departs from the previously observed patterns.
The conflicting viewpoints of Santiment and Ali underscore the uncertainty and volatility that continue to grip the cryptocurrency market. While Whales’ hesitance to participate in the current correction adds an element of uncertainty to the market’s future trajectory.
However, according to the latest price analysis, LINK is trading at $6.02 with a 24-hour trading volume of $211 million with a 50% boost. LINK’s value is up 0.57% in the last 24 hours. Whereas the current CoinMarketCap ranking is #21, with a market cap of $3 billion.
Join our Telegram Channel https://t.me/elevenews