In the letter:
- The social media discussions about Chainlink have been inactive since mid-February
- This could be a good thing as digital assets usually go up in price when there is no excitement in the crowd
- However, Chainlink’s active addresses decrease along with deposits to crypto exchanges
- The number of Chainlink whales with 10,000 LINK or more is also decreasing
- Chainlink is currently struggling to maintain the $ 25 price range
Chainlink’s digital asset is currently in a dormant phase in terms of social media discussions. This comes from data from the Santiment team, which also indicated that such a dormant period can actually be a good thing for the price of LINK, as explained below.
LINK isn’t discussed much, and that’s actually a good thing. Our studies show that wealth is more likely to increase when the discussion rests in the crowd.
Active Chainlink addresses are rejected
At the same time, address activity in the Chainlink network has been declining since the beginning of March. A decline in network activity could be the first sign of potential problems for Chainlink in the crypto markets as it means lower demand for LINK on the network.
The table below, courtesy of Santiment, further shows the decrease in daily active address activity since the beginning of the month.
Chainlink whales keep 10k + LINK on the descent
On-chain data from the Santiment team also showed a decrease in the number of Chainlink whales with at least 10,000 LINK. Such a decline is also worrying as it indicates continued sales of LINK by the big Chainlink owners.
LINK Battles to get the $ 25 grant
At the time of writing, Chainlink (LINK) is trading at $ 25.80 after falling to a local low of $ 23.60 today.
The latter price range was the result of a crypto-wide collapse in which Bitcoin also fell from yesterday’s high of $ 57,100 to a local low of $ 50,400.
It should be noted that many quarterly Bitcoin options and futures will expire tomorrow, March 26th, and the event could come with additional selling pressure on BTC. The possibility of an additional sale could ultimately result in Chainlink struggling again to maintain the $ 25 price range.