Link: 10/23 Status Update

A daily look at the trading status of the Chainlink token

Link and the top 100

Bitcoin is down and brought most alts down with it. Link has been one of the most affected tokens. It’s down 17% and trading at $0.2314.

Link is now the top 67th coin in market capitalization at $81M. Volume has diminished sharply to $2.4M from $5.8M in just one day and it’s become the 36th most traded coin.

The Bitcoin Gold fork is in a couple days, which will influence the price of all alts. I understand that the fork snapshot was actually taken days ago, though, so maybe there’s no point in buying Bitcoin now. In any case, most people in the Bitcoin community don’t take Bitcoin Gold seriously at all. Most will dump it as soon as it becomes available and invest back into BTC and alts. Who will buy is the real question.

Of course, it’s the SegWit2x fork that has everyone on edge.

Price action

Technical Analysis fans can clearly see that the downtrend is still in force in the daily Binance charts. However, MACD ticked up the last couple days. Selling pressure is easing a little bit on the daily chart. Much more if you look at the charts for 12 or 1 hours. A brief rally might be about to happen, but it’s unlikely to change the bigger trend. Only news and bigger exchanges will.

Whales

The top 50 wallets remain pretty much unchanged. A whale got an extra 97,000 tokens from Binance and is close to owning 1 million Link tokens.

The top 50 hold 74.68% of the tokens. The top 100 hold 78.05%. Small changes provoked by Binance bleeding even more tokens.

Exchanges

Etherdelta lost a couple hundred thousand tokens. Whatever. The volume there is negligible and people are using it to hold the tokens they bought a few weeks ago. The thought of people using Etherdelta as their wallet for 6.8M Link tokens still baffles me.

Binance is where it’s at. It retains 91.12% of the daily volume. That’s lower than yesterday, mainly because of a lower overall volume, which plays to the advantage of smaller exchanges, and because people keep on buying tokens in Binance only to immediately move them to their wallet.

If you want just one takeaway from this update, here it is: Binance lost half its tokens in 24 hours. Yes, it has just 2.65 million now (5.27 yesterday). That’s 12.14% of what it had a week ago. The bleed will ameliorate today or it will just run out of tokens to trade. It’s insane.

As mentioned on Reddit, Binance holds just 0.38% of the circulating tokens. And it determines the overall price. Truly amazing.

A lower volume and such few tokens on Binance means higher volatility. Moderate interest could see the Link price shoot up like a rocket. A single seller with a medium-sized wallet could flash-crash it. Either way, these changes are easy to reverse for exactly the same reasons. Keep that in mind before making a rushed trading decision.

Wallets

There are 11,709 now, 12.90% more than a week ago. They keep growing at a rate of approximately 1.50%. 1.40% yesterday, even with the lower volume. People are buying the cheap Link, then moving it to their wallets to wait for good news.

News

Nothing to see here. Ignore the people spreading rumors about new exchanges or still asking about an upcoming post-SIBOS announcement.

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