- Chainlink saw $120 million in outflows suggesting long-term accumulation by investors.
- LINK price has recovered by 11% fueled by continued exchange outflows.
- Whale activity dominates LINK’s market movements with 66% of holders owning large amounts.
Chainlink (LINK) has recorded consistent exchange outflows over the past month, suggesting potential long-term holding by investors. Data available from IntoTheBlock shows that LINK tokens have left the exchanges through net outflows surpassing $120 million. Recent user withdrawals of assets from exchanges show that this trend has continued over a month.
Exchange Netflows Suggest Bullish Sentiment
Exchange Netflow data helps gauge investor sentiment by tracking inflows and outflows from trading platforms. Positive netflows indicate deposits, often linked to selling pressure. Negative values suggest withdrawals, typically pointing to long-term holding or accumulation. Chainlink’s netflows have remained negative throughout the past month.
This consistent withdrawal behavior may indicate investor confidence in Chainlink’s future value. It also hints at an accumulation phase, where holders prefer storing their assets off exchanges. These trends have aligned with a recent price recovery.
Price Action Aligns with Accumulation Signals
Over the last seven days, LINK’s price has increased by 19%. At the time of reporting, LINK trades around $14.61, with 24-hour gains of 12%. This price range marks a recovery from earlier lows near $10.75 earlier this month. The increase in value may reflect the impact of recent outflows and renewed interest from buyers.
However, broader metrics paint a mixed picture. LINK has declined 4% month-to-date and 9.3% since the beginning of the year. Despite the short-term rise, the asset still faces longer-term resistance levels.
Whale Holdings and Unlock Events Remain Key Factors
Chainlink’s large holders maintain a strong presence. Around 66% of LINK’s supply is controlled by whale addresses. Whale movements often influence market trends and prices. Additionally, past unlock events have affected LINK’s value. In March, a major non-circulating wallet transferred 14.875 million LINK to Binance.
Such large movements often trigger changes in price behavior. According to past data, nine of the ten previous unlocks led to price increases within 30 days. This historical trend could be relevant to future performance.
Holder Distribution and Activity Increase
Currently, 44% of LINK holders are in profit, while 53% report losses. The remaining 4% remain at break-even. Long-term holders make up the majority, with 78% holding LINK for over a year.
Transactions above $100,000 in LINK reached $446.74 million in the past week. Weekly netflows recorded a negative value of $28.61 million, reinforcing the trend of consistent outflows from exchanges.
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