- LINK has climbed to the highest price level in six weeks.
- Most LINK trades continue to generate profits.
Chain link [LINK] leads altcoin rally to six-week high after price surge, data from Santiment has shown.
According to the on-chain data provider, the altcoin briefly exchanged hands at $17.53 during the intraday trading session on May 23 before witnessing a slight pullback. a
As I write this, LINK exchanged hands for $17, according to CoinMarketCaps facts.
LINK holders in profit
The recent rise in the price of LINK has made it a significantly profitable investment for its holders.
AMBCrypto assessed the ratio of LINK’s daily transaction volume to profit and loss and found that it was 11 on May 23. This indicated that for every LINK trade that ended in a loss during that trading period, 11 trades returned a profit.
At the time of writing, the value of this metric was 7.49, indicating that profitable trades remained high.
Source: Santiment
Furthermore, the market value to realized value (MVRV) ratio of the token was 71.56%. This suggested that LINK’s market price was significantly higher than the average purchase price of all holders.
While it indicated that the token was overvalued, it also meant that LINK holders were assured of a profit if they sold.
Currently, 432,000 wallet addresses, which make up 62% of all LINK holders, are in the money, according to IntoTheBlock. These are investors who hold the altcoin for a profit.
Conversely, 221,000 addresses, representing 32% of all LINK holders, are ‘out of money’, making their tokens loss-making.
Source: IntoTheBlock
Don’t get carried away
Despite LINK’s price rise over the past week, a key technical indicator has trended down, creating a bearish divergence.
Readings from LINK’s daily chart showed that the Chaikin Money Flow (CMF) fell even as the price rose over the past seven days. This indicator measures the money flowing in and out of the LINK market. At the time of writing, LINK’s CMF was close to 0.02.
Source: LINK/USDT on TradingView
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A bearish divergence occurs when the price of an asset rises while the CMF is trending down. This means that buying volume is not as strong as expected, even as the price of the asset rises.
It suggests to market participants that the price rally may not be sustainable.