Chainlink has our attention today because of a long period of losses visible on Network Profit Loss:
What does it mean? Since January, most LINK tokens were moved at a loss. Of course if we assume their previous moves as purchases, last moves as sells. Basically it's one of a bottom indicators. Just one.
Then we discovered an interesting token circulation pattern:
There were a few times when circulation increased, then dumped, and then price surged.
There is a chance we are now in a similar pattern.
If we compare it to LINK and it's circulation one year before...
...Then we could notice some difference. The pattern above working a bit differently. That could be the sign of a bull market itself. Circulation increases, then a lag happens, and then the price grows. Do you notice anything else?
Chart used: https://app.santiment.net/s/4ofkTD-H
The BitMEX Perpetual Contract Funding Rate is an important way to gauge whether the crowd on one of crypto's top exchanges, is getting overly greedy or fearful.
The metric is defined on our Santiment Academy as a fee paid by one side of the perpetual contract to the other. When the funding rate is positive, Longs pay Shorts. When the funding rate is negative, Shorts pay Longs.
So in essence, as traders, we're looking for high funding rates (greed) to be indicative of a potential upcoming top, and low funding rates to indicate a potential bottom (fear).