Chainlink (LINK) gained just over 10% last week. The continued accumulation of tokens by whales could be a positive sign for long-term investors. According to statements by IntoTheBlock, the exchange flow is also in the negative zone.
LINK and MATIC Competition
In the popular altcoin LINK, there is close competition with the Layer 2 scaling solution Polygon (MATIC). They are ranked 16th and 18th respectively in the list of largest cryptocurrencies. The reserve metric on centralized exchanges tracks how much of a token is held there. When the metric rises, it indicates that a large amount of tokens are likely entering exchanges for sale purposes.
Conversely, tokens leaving exchanges indicate ongoing accumulation. The announced Chainlink exchange reserve chart noted a downward trend in the metric since mid-February. On the other hand, MATIC has been slowly rising since mid-February. It showed a decline from April 11 to April 14 but quickly rose again.
This situation could generally indicate that token holders do not have confidence in the altcoin and are consistently selling. Additionally, the mentioned metric is just one of many factors concerned with the market sentiment and the accumulation or distribution of a token. Therefore, the data alone cannot be used to draw conclusions about future price trends.
Decline in LINK Data
LINK’s overall sentiment has been negative, and it has been this way for the past ten days. The rally from $13.2 to $15.6 in the second half of April saw a rapid increase in social engagement. It surpassed the highest levels of March and nearly set new peaks for 2024 on April 19. However, social volume has been on a downward trend for the past six weeks.
Moreover, social volume began to decline from the second week of March. The difference, however, was primarily the negative sentiment. It stayed above zero for only a few days, and even then, the sentiment was weak. Accumulation and social media trends suggest that LINK prices might perform better than MATIC in the coming weeks.
