Concerns Arise Over Centralization of Chainlink Funds

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 53 minutes ago

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Centralization Concern: Over 66% of Chainlink's circulating supply is concentrated on centralized exchanges, particularly Binance, which holds an astonishing 85.1 million LINK tokens, raising significant concerns about centralization risks in the market.
Declining Reserves: LINK reserves on exchanges have plummeted from 145 million in 2022 to approximately 85 million, indicating a strategic shift towards long-term storage solutions by investors, which may impact market liquidity and price stability.
Binance's Dominance: With Binance holding 66.4% of LINK reserves on exchanges, fluctuations in its holdings can profoundly sway market dynamics and investor sentiment, prompting market observers to monitor these changes to anticipate broader trends.
ETF Inflows: Despite May's LINK spot ETF inflows of $8.29 million marking the lowest monthly figure in a year, these ETFs continue to show positive inflows, indicating sustained interest in Chainlink and the potential for attracting more institutional funds in the future.

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Technical Analysis for LINK

Technical Sentiment Analysis for Chainlink (LINK). As of , Chainlink (LINK) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 3 technical signals, shows that 0 indicators are flashing buy, while 3 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for LINK stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, LINK is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Chainlink (LINK) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	7.409	8.085	8.681	9.357	9.953	10.629	11.225
Fibonacci	8.085	8.571	8.871	9.357	9.843	10.143	10.629

About LINK

Founded in 2017, Chainlink is a blockchain abstraction layer that enables universally connected smart contracts. Through a decentralized oracle network, Chainlink allows blockchains to securely interact with external data feeds, events and payment methods, providing the critical off-chain information needed by complex smart contracts to become the dominant form of digital agreement.The Chainlink Network is driven by a large open-source community of data providers, node operators, smart contract developers, researchers, security auditors and more. The company focuses on ensuring that decentralized participation is guaranteed for all node operators and users looking to contribute to the network.To learn more about this project, check out our deep dive of Chainlink.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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