Summary:
- Chainlink reserves on crypto exchanges have dropped to 14.6% of the total supply
- Chainlink’s network has continued to grow for a third straight month
- $29 continues to act as a strong support for Chainlink
- However, an unstable Bitcoin might throw cold water on the fact that Grayscale opened a LINK trust
Chainlink reserves on crypto exchanges have been in a state of constant decline since September 2020 when they were at 34% of the total supply of LINK.
According to data from the team at Santiment, the Chainlink reserves on crypto exchanges currently stand at 14.6% of the total supply. At the same time, activity on the Chainlink network continues to be high for the third straight month as explained through the following statement and chart by the team at Santiment.
#Chainlink is trading a hair above $29, & the amount of new addresses created on its network has maintained its high rate nearly 3 months into 2021. $LINK‘s ratio of supply on exchanges is also down to 14.6%, where it was last this low in July, 2019.
A Weakening Bitcoin Could Eclipse Grayscale Launching a Chainlink Trust
At the time of writing, Chainlink (LINK) is trading at $29.30 with the $28.50 to $29 price area acting as a strong support zone amidst what looks like a weakening Bitcoin. Earlier today, the King of Crypto took a brief nosedive to the $55,400 price area after yesterday’s peak value of around $60k.
The dip by Bitcoin caused a ripple effect in the crypto-verse with Chainlink dipping from yesterday’s $31.50 to today’s lows around $29.
To note is that the weekly close is only hours away and chances are that Bitcoin revisits the $55k support zone with $52k and $50k offering other areas of interest should selling pressure continue to bombard BTC.
This in turn means that altcoins such as Chainlink will once again be at the mercy of Bitcoin despite the bullish news of Grayscale launching a LINK trust. Therefore, caution is advised when longing Chainlink today. A wait-and-see approach should be considered due to the potential of the weekly causing further losses in the crypto-markets.