As crypto Market Struggles to Shake Off Last Week's Weakness, Latest Sentiment Data from Santiment x.com/santimentfeed/status/1844082131279999164″ target=”_blank”>sample that token holders and traders are bearish on some major altcoins. According to their recent analysis, token holders are the most bearish on Chainlink, a middleware solution that powers DeFi and nft, ethereum, Solana and bitcoin.
From their evaluation, it is interesting to note that these coins in focus are those that are in the top 10, except for Chainlink which is still outside the top 20. While Chainlink tops the list, others, mainly ethereum, Solana, and bitcoin, are in the top 5.
<img class="size-full wp-image-647321" src="https://technicalterrence.com/wp-content/uploads/2024/10/Why-are-traders-very-bearish-on-Chainlink-Solana-and-Bitcoin.jpeg" alt="Chainlink, Solana, ethereum and bitcoin holders are bearish | Source: @santimentfeed via x ” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=3190 3190w, https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/10/GZd74JGXAAACew0.jpeg?w=3000 3000w” />
Chainlink struggles despite CCIP success, ethereum disappoints
Although Santiment did not provide a reason to explain why the community is bearish on these tokens, there are fundamental factors that support this view. Despite being a leader in DeFi through its oracle solution and Cross-Chain Interoperability Protocol (CCIP), Chainlink is still struggling to gain momentum.
LINK, the native token, rose as high as $22, which is below the 2021 highs and is currently 53% below the 2024 highs. Considering its role in DeFi and nft, holders expected the token will float higher, outperforming the market. This was especially so after the launch of the CCIP solution, which has been adopted among some of the major DeFi and TradFi platforms.
x/X9O2KVy6/”>x/X9O2KVy6/” alt=”Chainlink price moves sideways on daily chart | Source: LINKUSDT on Binance, TradingView” />
The pessimism about ethereum's prospects could also be due to disappointment following the approval of the first batch of ethereum spot ETFs. Unlike bitcoin, whose prices rose, surpassing $70,000 to $74,000, ethereum spot ETFs have not been as successful.
Starting October 10, Valor Soso eth-spot” target=”_blank”>sample that all issuers in the United States managed just over 6.6 billion dollars. Still, there are massive outflows of ETHE from Grayscale, putting massive pressure on eth prices. The second most valuable coin is still trading below $2,800 and moving sideways in a possible distribution.
<img class="size-full wp-image-647322" src="https://technicalterrence.com/wp-content/uploads/2024/10/Why-are-traders-very-bearish-on-Chainlink-Solana-and-Bitcoin.png" alt="Detect ethereum ETF assets under management | source: Valor Soso” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/10/Screenshot-2024-10-10T163650.355.png?w=1786 1786w, https://www.newsbtc.com/wp-content/uploads/2024/10/Screenshot-2024-10-10T163650.355.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/10/Screenshot-2024-10-10T163650.355.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/10/Screenshot-2024-10-10T163650.355.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/10/Screenshot-2024-10-10T163650.355.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/10/Screenshot-2024-10-10T163650.355.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/10/Screenshot-2024-10-10T163650.355.png?w=1140 1140w” />
Solana Suffers as Meme Coin Momentum Fades and FTX Asset Distribution Impact
Solana, for his part, is also under pressure. The success of Pump.fun, which saw hundreds of thousands of meme coins deployed, supported prices. However, as Tron gains market share, momentum fades, negatively affecting prices.
Additionally, in the coming months, FTX trustees will distribute nearly $16 billion in assets to victims. Although some might continue to HODL, others will choose to liquidate, which is negative for the currency.
