One on-chain metric could signal Chainlink's next big price move

Josh Rager, a respected crypto trader, noticed a strong relationship between one on-chain metric and the price of Chainlink.

Since early December 2018, LINK went through a bull rally that took its price up nearly 26x. Along the way, Google published a guide on how to use the service with its cloud-based offering and Coinbase and Coinbase Pro listed the coin.

LINK's price action since May 2019 appears strongly correlated to exchange deposits, according to Josh Rager, co-founder of Blockroots.

Rager noticed that three different spikes in total transfers were closely followed by price corrections for LINK. These deposits could also be related to growing evidence that the team at Chainlink is liquidating part of their holdings.

The first one occurred on May 27, when the number of transfers to exchanges hit 186 while the price of LINK was hovering around $1.33.

As the amount of exchange deposits jumped to 132, LINK reached a high of $2.05 to then plunge nearly 24 percent over the following day.

Although LINK retraced 11 percent from the highest price point of Aug. 25, it continues to trade around the same price levels as it did that day.

The Bollinger bands for LINK appear to be squeezing on the 1-day chart.

A break of support or resistance could be used to confirm the direction of LINK's next impulse.

According to Josh Rager, an increasing number of exchange deposits are correlated to declining LINK prices.