Chainlink Investors In Accumulation Mode – LINK Price Primed For A Rally?
July 13 2024 - 6:00AM
NEWSBTC
The price of Chainlink has mostly struggled in the past few weeks,
mirroring the stagnant condition of the general market.
Interestingly, investors seem motivated to keep faith in the
altcoin rather than be discouraged by the sluggish price action
observed in recent weeks. According to the latest on-chain
revelation, investors appear to be shifting to a long-term holding
strategy, with a focus on the future promise of the Chainlink
token. This leaves the question — could the LINK price be primed
for a rally? $110 Million Worth Of LINK Leave Centralized Exchanges
According to the latest on-chain observation, the Chainlink token
appears to be undergoing an accumulation trend, with investors
moving their assets from centralized exchanges. Latest data from
IntoTheBlock shows that approximately 8.7 Million LINK tokens
(worth about $110 million) have been withdrawn from exchanges in
the last two weeks. Related Reading: Analyst Predicts 2,750%
Celestia (TIA) Price Explosion To $188, Here’s The Roadmap This
observation is based on the Netflows metric, which tracks the
difference between the amount of tokens that are transferred in and
out of centralized exchanges. When the value of this metric is
negative, it implies that more assets are leaving than entering
crypto exchanges. Conversely, a positive value of the Netflows
metric indicates that more assets are flowing in than out of
exchanges. While it is difficult to unravel the rationale behind
the increased outflow of Chainlink tokens from exchanges, the
exodus of massive LINK amounts signals a shift in investor
sentiment. Specifically, the direction of the funds’ movement
suggests an increase in investor confidence, as they appear to be
moving their tokens away from trading platforms. IntoTheBlock said
in the post: Such activity is typically associated with an
accumulation phase, indicating that investors are moving $LINK off
exchanges and into long-term holdings. A corroborating data point
came from another blockchain firm, signaling major accumulation by
major Chainlink stakeholders. According to Santiment’s data,
investors holding between 10,000 – 1,000,000 coins have added 9.2
Million LINK since June 24. This brings the holdings of this
investor cohort to 207.29 million coins, an 8-month high. Chainlink
Price At A Glance As of this writing, the price of LINK stands
around $12.94, reflecting a 3.4% increase in the past 24 hours.
According to CoinGecko data, the Chainlink token is up by 2.5% in
the past week. However, this recent show of strength hasn’t been to
reverse Chainlink’s almost 10% decline in the past two weeks. On a
positive note, though, the declining supply of LINK tokens on
centralized exchanges could set the stage for a bullish rally for
the altcoin. Related Reading: Bitcoin Price Trajectory
Remains Bearish, $49,000 Liquidity Zone Looms As Next Downside
Target Featured image from Binance Academy, chart from TradingView
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