ChainLink Transfers into Binance Hit $16M, Suggesting a Top for LINK 14

ChainLink Transfers into Binance Hit $16M, Suggesting a Top for LINK

Quick take:

  • In the last 24-hours, there have been 5,000 LINK transfers into Binance. 
  • The value of these transactions is more than $16 Million.
  • The high volume of LINK transfers could point to a top for the digital asset. 

The net transfer volume of ChainLink (LINK) transactions into the crypto exchange of Binance has hit a new high of $16 million. This value was from 5,000 LINK transfers into the exchange and is the largest inflow, to date, of ChainLink in terms of volume. This feat was highlighted by the team at Glassnode who made the observation via the following tweet.

Read also: ChainLink (LINK) Hodlers Increase by 100% in 2020

High Inflows Could Point to a Top for LINK

What comes to mind after grasping the magnitude of $16 million in LINK flowing into Binance, is the possibility that LINK investors are about to sell. Furthermore, this could point to a local top for LINK. From a macro level of the weekly LINK/USDT chart, it is clear that the digital asset might be running out of steam.

ChainLink Transfers into Binance Hit $16M, Suggesting a Top for LINK 15

Further analyzing the weekly LINK/USDT chart above, the following can be observed.

  • Weekly trade volume has decreased over the weeks.
  • Both the weekly MACD and MFI, point to a situation of exhaustion for the digital asset.
  • The 50-weekly moving average provides some serious support around $3.00.

These observations from the weekly LINK/USDT chart are further confirmed by the daily chart which suggests that ChainLink (LINK) has hit a local top at the $4.95 resistance area.

ChainLink (LINK) Marines Continue to Grow

However, LINK’s pending correction might be a slow and less volatile one, given the fact that the number of ChainLink (LINK) investors has doubled since the beginning of 2020.

According to the team at FlipsideCrypto, the increment in LINK hodlers can be attributed to the project being young and investors holding the token as a means of speculation. They explain:

Mapping out the distribution of LINK’s active supply shows that most of the activity is happening between users and exchanges…

The fact that users are trading their tokens on exchanges reflects the token’s increasing value. The protocol is still young and has already inked cross-industry partnerships with Google and Tezos for example.

Additionally, the DeFi boom in the crypto-verse is another reason ChainLink (LINK) is flourishing in the crypto markets.

…a lot of LINK was deposited on decentralized lending platforms. A good example of this is the Aave platform, which currently holds $34M in LINK for users to borrow and pay interest on.