Data Indicates Chainlink and Band Protocol Are Due for a Correction

Key Takeaways

  • Chainlink has surged over 127% since the beginning of the month while whales have been offloading their tokens on the market.
  • Likewise, Band Protocol skyrocketed over 330% as millions of tokens flood different cryptocurrency exchanges.
  • Given the mounting selling pressure behind these altcoins, a correction seems imminent.

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Investors are overwhelmingly bullish on Chainlink’s LINK and Band Protocol’s BAND tokens.  Still, different on-chain metrics suggest these competing oracle tokens are bound for a wild downward ride.

LINK Whales Offload Their Bags

Those who dared to short Chainlink over the past few weeks have been left in the dust.

The decentralized oracles token continues trending upwards, having surged by a whopping 127.5% since the beginning of the month. The swift price action allowed LINK to steal the crypto spotlight as prices recently hit a new all-time high of over $17.7.

Chainlink was able to take a 4% share of the overall cryptocurrency market capitalization, earning the number five spot on the top ten cryptocurrencies’ list.

Data from LunarCRUSH reveals that the number of LINK-related mentions on social media skyrocketed in August, too. The community insights provider has registered over 410 million social engagements thus far this month. More importantly, roughly 68% of all the social interactions have been bullish about Chainlink.

These include favorites, likes, comments, replies, retweets, quotes, and shares, to name a few.

Chainlink's Social Engagement by LunarCrush
Chainlink’s Social Engagement by LunarCRUSH

The rising chatter around LINK across different social media networks is nonetheless concerning.

Usually, when market participants pay increased attention to a given cryptocurrency due to an ongoing pump, it tends to lead to steep corrections.

Big investors with millions of dollars in Chainlink, colloquially known as “whales,” seem aware of the high probability of a significant downturn. Santiment’s holder distribution chart shows that…

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