How Chainlink’s price spike is affecting its supply

• LINK has spiked over 20% for the third time within two months.
• Whales accumulated over 4% of total supply.

Chainlink [LINK] has detached itself from the broader market’s price trends and is now following its unique trajectory. As a result of its current price movement, certain other metrics have also responded accordingly.

Chainlink spikes yet again

A review of Chainlink’s daily timeframe chart revealed that it recently experienced yet another notable double-digit price surge.

On 8th November, it gained 14.33% in value, closing at nearly $15. Remarkably, this marked the third occurrence of such a substantial price movement within a span of less than two months.

Source: TradingView

Despite having spent some time in the overbought territory, the recent upswing pushed it even further into overbought conditions.

This was indicated by its Relative Strength Index (RSI) surpassing 80. Also, at the time of this update, it was trading with a minor loss of approximately 2%, yet it still maintained a price point above $14.

The RSI’s positioning underscored a robust bull trend.

Furthermore, this latest price trend has prompted previously inactive wallets to become active, and it has encouraged whales to augment their accumulation.

Chainlink’s dormant supply becomes active

As per Santiment’s chart analysis, there has been a recent trend where the average age of Chainlink tokens in wallets has started to level out.

This development suggests that previously dormant whale tokens are re-entering the market.

Essentially, the current price trend has been impressive enough to motivate long-term token holders to release their holdings. This action by the whales will result in an increased supply of LINK tokens in circulation, and boost trade volume.

Source: Santiment

Additionally, the Santiment chart revealed that while dormant coins are becoming active, certain whales have also escalated their accumulation efforts.

The chart illustrated that wallets holding between 10,000 to 10 million LINK tokens now hold over 38% of the supply. Furthermore, a deeper examination showed that these wallets have acquired 4.7% of the total supply within the past five months.

 How much are 1,10,100 LINKs worth today

LINK’s 30-day MVRV screams massive profit

The recent price trend of Chainlink has been notably favorable and profitable, particularly for holders over the past 30 days. An examination of the 30-day Market Value to Realized Value ratio (MVRV) for LINK revealed a substantial figure.

At the time of this analysis, the MVRV was around 27%. This MVRV value suggests that LINK holders for the last 30 days are currently enjoying a profit of over 26%. However, the MVRV and the RSI signal the potential for a price correction in the near future.

Source: Santiment