How One Savvy Trader Profited from Chainlink’s (LINK) Price Swings

A savvy cryptocurrency trader has developed a strategy to profit from the price fluctuations of the LINK token, as revealed by Lookonchain. By analyzing on-chain data, we can reconstruct the trader’s techniques.

The trader’s wallet address, 0xecded8b1c603cf21299835f1dfbe37f10f2a29af, has been actively trading LINK by taking advantage of its price fluctuation between about $5 and $9.

Trading the Range

The trader seems to open long positions by buying LINK when the price is near $6. Then, when the price rises to around $8, they sell to close the longs at a profit. They also short LINK – borrowing to sell high and then buying back low to close the shorts.

Specifically, on July 21, the trader withdrew LINK from Compound, a lending protocol, and sold it on the open market while the price was above $8. Later, on August 10, they opened LINK shorts on Aave, another lending platform, right before LINK’s price dropped.

This pattern repeated on October 1, when the trader again withdrew LINK from Compound to sell when the price spiked over $8. They simultaneously opened new shorts on Aave.

By strategically opening longs and shorts based on LINK’s trading range, this trader has managed to extract consistent profits from the volatility. However, they are careful to maintain enough margin to avoid liquidations.

While trading on fluctuations can be lucrative, it also requires patience and discipline. Other traders should be cautious of overtrading and FOMO when attempting similar strategies. On-chain analysis provides valuable insights into proven crypto trading techniques.

Check $RECQ Meme Coin

Sponsored: Invest Responsibly, Do Your Own Research.
Serves as the base currency for all transactions within the Rebel Satoshi platform
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.


Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.