On-chain data shows that a Chainlink signal that last preceded a 31% rally for the asset’s price has just reversed.
Chainlink Age Consumed Metric Has Observed A Sharp Spike Recently
According to data from the on-chain analytics firm Santiment, LINK has recently seen a significant movement from old coins. The relevant indicator here is the “Age Consumed,” which tells us whether the dormant Chainlink tokens are on the move or not right now.
When the indicator’s value registers a large spike, it’s a sign that the blockchain is currently observing the transfer of a significant number of old coins. Such dormant tokens belong to a cohort called the “long-term holders” (LTHs), made up of the relentless hands of the sector.
As such, this metric surging can be something to watch out for, as it means that these LTHs, who usually remain quiet no matter what’s going on in the wider market, have decided to break their dormancy.
Now, here is a chart that shows the trend in the Chainlink Age Consumed over the last few months:
The value of the metric appears to have shot up recently | Source: Santiment on X
As displayed in the above graph, the Chainlink Age Consumed indicator has observed a sharp rise recently, implying that the LTHs have been making transactions.
At the peak of this latest spike, the metric’s value touched 4.28 billion, which is the highest level seen since the middle of September. Back then, the indicator registered a spike almost double in scale, and interestingly, what followed in the next couple of weeks was a 31% rally as LINK went from $6.36 to $8.22.
It’s hard to say if a similar pattern would repeat for Chainlink this time since the LTHs could have broken their silence for several reasons, including for selling.
An analyst has pointed out that yesterday (which was about the same time as this spike in the Age Consumed), the whales made many transactions, as the chart below shows.
Looks like the metric has spiked up | Source: @ali_charts on X
In total, the Chainlink network observed 2,600 transactions valued over $100,000 yesterday. The spike would confirm that the LTHs who broke their dormancy weren’t just ordinary investors but the whales.
In isolation, it’s hard to say why these two indicators recently observed a spike. Still, when looking at the latest LINK news, perhaps the most likely explanation becomes apparent.
Yesterday, Chainlink staking v0.2 went live on the Ethereum blockchain, allowing the v0.1 stakers to migrate toward the new network. Thus, given the close timing of the spikes in the Age Consumed and Whale Transaction Count, it would appear quite probable that these LTHs were making transfers toward the new staking pools.
LINK Price
Chainlink had observed some drawdown towards the $13.7 mark just recently, but it would seem like the asset has already recovered as it’s now trading around $14.7.
LINK has already recovered from its recent lows | Source: LINKUSD on TradingView
Featured image from iStock.com, charts from TradingView.com, Santiment.net
