Chainlink (LINK) Sees 15% Weekly Gains Despite Hodler Selling

Chainlink (LINK) experienced a 2.74% increase in value over the last 24 hours, influenced by potential investments from Franklin Templeton in major altcoins. Despite a prevailing bear market, optimistic news like the Bitwise Chainlink ETF movement has offered encouragement for long-term holders, resulting in a 15.25% price increase in just one week.

Key Takeaways

Chainlink (LINK) gained 2.74% in value in the last 24 hours, buoyed by news of Franklin Templeton considering significant altcoin investments.
Positive developments, such as the DTCC moving Bitwise's Chainlink ETF closer to launch, have fostered some hope among holders.
The recent 15.25% weekly increase has generated short-term optimism, although mixed on-chain metrics show selling pressure from long-term holders.
Positive spot taker metrics suggest a growing buying presence in the market, while hodlers continue to offload their positions.

15% weekly gains for LINK, even as hodlers keep selling - Reasons?

Understanding Spot Taker Dominance and Hodler Selling

Chainlink Spot Taker CVD Source: CryptoQuant

Since November 22, the spot taker metric has indicated that buyers are gaining the upper hand. This metric evaluates the cumulative difference between buying and selling volume from spot taker transactions over three months. When the spot taker CVD is positive and increasing, it signals that buyers are dominating the market. This could be a strong positive sign for Chainlink investors.

Chainlink Hodler Position Change Source: Glassnode

Conversely, the net position change for LINK hodlers has been noticeably negative. This metric reflects the monthly changes among long-term investors, or hodlers; negative values indicate that investors are liquidating their assets. This trend has been ongoing since early October, coinciding with LINK's downward price movement. Even as the selling pressure persists, a recent uptick in price contrasts with the significant selling by hodlers.

Chainlink 1-day Chart Source: LINK/USDT on TradingView

A review of the 1-day LINK price chart reveals persistent selling pressure. Despite a recent price bounce, the Money Flow Index (MFI) struggled to rise, registering a value of 35 at the time of reporting. Although not alarmingly low, it indicates a seller-dominated environment with ongoing downward pressure since October. This aligns with the selling trends among hodlers. Despite short-term signs of positivity, LINK must break through the critical $16 supply zone before a sustained upward trend can commence.