ChainLink could see another sell wave despite price fall

On-chain movements for ChainLink are trending downward as the asset drops again. Some investors are trying to either make a profit or recoup their losses.

While ChainLink (LINK) surged in September, the frontier crypto market hovered in bearish territory. It rose from $9 to $13 in the last three weeks of the month and started October with a sharp decline to $10.

While LINK has been trying to recover over the past two weeks, on-chain indicators are pointing to a potential decline.

According to data provided by IntoTheBlock, the number of daily active addresses for ChainLink increased from 155 to 600 last week as the asset broke the $12 barrier.

By profitability LINK DAA – 23 October | Source: IntoTheBlock

An increase in the asset’s DAA profit may indicate that some investors are looking to take profits due to high price fluctuations.

Despite the price increase, the number of DAAs making losses increased from 222 on October 20 to 263 on October 22. This move may indicate that some long-term holders are recouping their losses.

Either way, LINK’s bullish momentum could possibly face a sell-off.

It’s important to note that any market-wide bullish momentum could potentially drag ChainLink along with it.

According to ITB data, the number of whale transactions involving at least $100,000 worth of LINK increased from 54 on October 19 to 134 on October 22. Last week, the total amount of these transactions reached 361 million dollars.

LINK is down 1.75% in the last 24 hours and is trading at $11.78 at the time of writing. The asset’s market cap currently stands at $7.38 billion and its daily trading volume is $320 million.

Increasing trading volume and large amounts of whale transactions often lead to high price volatility.