Crypto markets analysis tool Santiment recently provided an update on Chainlink. He pointed to a buying opportunity for investors in the popular altcoin project. Here are the details…
Is it time to buy for Chainlink?
Indicators reveal how ChainLink has gained momentum since the beginning of July, thus creating a reasonable buy time with a profit of 41 percent since July 1, as seen in the chart below. The data shows how dormant LINKs are experiencing a massive movement as cryptocurrencies move away from exchanges to cold wallets. The primary factor in this latest price increase, according to Santiment experts, is how the supply of LINK on exchanges has dropped to a reasonable amount over the past seven days. This indicates that longer-term holders are now buying the asset and the paper hands are leaving the market.
https://twitter.com/santimentfeed/status/1556529549298388992
Additionally, dormant LINKs have been experiencing great activity from the end of June as seen in the chart. This has also always led to an increase in price action. According to data from CoinMarketCap, LINK price is currently trading at $8.46 with a 24-hour trading volume of $429,323,243. In particular, LINK rose 9.22 percent in the last 24 hours. In the previous 30 days, LINK went from $5.79 to $8.49. ChainLink ranks 23rd on CoinMarketCap with a market cap of $3.97 billion. It sits just below the FTX Token with a market cap of $4.19 billion.
Relationship between Ethereum’s Merge and Chainlink
A recent tweet by ChainLinkGod.eth shows how ChainLink will be integrated into the Ethereum Merge set, which will take place on September 2022 this year. The tweet emphasized that the Chainlink protocol will continue to work on Ethereum during and after the Merge. However, it will not support Ethereum Blockchain forks, including PoW forks.
The Chainlink protocol will continue to operate on Ethereum during and after the Merge
Forks of the Ethereum blockchain, including PoW forks, will not be supported
This is aligned with the Ethereum community’s decision to upgrade the chain to PoShttps://t.co/Avxafvr7eA
— ChainLinkGod.eth (@ChainLinkGod) August 7, 2022
Explaining why it is impossible to support PoW forks, he points out that this will duplicate the LINK token and that forked PoW tokens are unlikely to have sufficient liquidity needed for secure Data Feeds.
Altcoin supply on exchanges is falling
Supply on exchanges is another key indicator that shows the intention of traders in the market in general. By measure, most market participants are not currently willing to sell their holdings. Therefore, the supply on centralized exchanges is shifting towards cold wallets. According to the metric, only 18% of the coin supply remains on centralized exchanges. This is a relatively low number indicating no selling pressure on the cryptocurrency. LINK has seen a price increase of more than 30 percent over the past few weeks and successful action in local markets. Thus, it manages to outperform the biggest cryptos in the market.
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