Chainlink rose another 4% today, maintaining its place as the fifth largest crypto by market capitalization – but are investors starting to get nervous?
According to chain analysis resource Santiment, Chainlink (LINK) investors may be „increasingly undecided about their prolonged rally. Santiment reported that while there were „not many downward indicators or signs of an impending stop“ for LINK as of last week, that may no longer be the case.
The number of LINK deposits in the exchanges reached an all-time high (ATH) of 8.2 million, the same day that the token reached an ATH price of about $15. LINK holders may be moving their tokens to the exchanges for profit, as the last time an ATH was registered for this metric the price was $4.51, the highest of the token at the time.
The average age of investment in LINK dollars is also „going down a lot,“ according to Santiment, indicating that long-term holders are beginning to make a profit.
A brief guide to the main DeFi platforms
Santiment published on August 13 that the number of daily active addresses was 20,800, five days after the ATH of 22,600.
Despite these signs, LINK has not yet slowed down. Thanks to new investors like Dave Portnoy, CoinMarketCap data shows that LINK reached a new all-time high today of around $18.37 and now has a market capitalization of over $6 billion.
An analyst predicts that the growth of the DeFi ecosystem may push the price of Chainlink (LINK) to $32.
What’s behind the LINK rally?
In the last two weeks, the price of LINK increased by more than 124%, from $7.74 on July 31 to $17.36 at the time of writing.
Cointelegraph reported multiple factors that may have contributed to LINK reaching new all-time highs, from the reduction in short contracts in the futures market to more recent demand from yield farmers trying to get YAM tokens, before the token collapsed today.
DeFi BAND and LINK tokens outperform Bitcoin Billionaire price performance by winning 100% in 10 days
One of the strangest stories about LINK during his rally revolved around Zeus Capital. The investment firm tried to lower the price of the token and even offered payments to influential people on Twitter to post LINK’s price action, apparently because the company has a massive short position on the token.