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 Latest data from IntoTheBlock shows that approximately 8.7 Million LINK tokens (worth about $110 million) have been withdrawn from exchanges in the last two weeks.
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’s key stakeholders with 10K-1M coins have been showing major accumulation during these suppressed markets. Since June 24th, they have added 9.2M LINK, a +4.65% increase to their collective holdings since that date. pic.twitter.com/nYBvChXhHU
— Santiment (@santimentfeed) July 12, 2024
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.