In the volatile world of cryptocurrency, Chainlink has emerged as a standout performer this September. Notably, unlike several other digital assets, whenever Chainlink’s token, LINK, makes its way to exchanges, its price witnesses an upward trajectory. Recent observations have underscored a +23% uptick in its value over a brief span of two weeks, attributed primarily to the movement of LINK from active exchanges to more secure cold wallets.
Santiment, a prominent blockchain analytics firm, recently tweeted insights concerning Chainlink’s market performance and its supply dynamics on exchanges.
🔗👍 #Chainlink continues to be one of the best #crypto performers in September. Unlike many other assets, its price often sees an initial lift when $LINK moves to exchanges. Its price is +23% in 2 weeks as exchange supply now flows back to cold wallets. https://t.co/mocTwCW3vR pic.twitter.com/juDXb70iTX
— Santiment (@santimentfeed) September 25, 2023
This movement of Chainlink’s supply away from exchanges aligns with its price’s incremental progress in the market. A detailed analysis by Santiment adds weight to this observation. Their data from September 14 shows a significant peak in LINK’s exchange supply in 2023, marking an impressive 17.2% gain. Yet, in a swift turn of events, by the 24th of September, just 10 days after the peak, the LINK supply on exchanges receded to 16.4%.
Such trends suggest that traders and holders might exhibit increased confidence in LINK, opting to hold onto it rather than trade. The pullback of the LINK supply from exchanges to cold storage typically implies a bullish sentiment, indicating that investors might be gearing up for a long-term holding strategy. As the crypto space remains unpredictable, such movements in Chainlink offer intriguing insights for enthusiasts and investors alike.
In the past few days and weeks, Chainlink has been trading in uptrend mode, with the price hovering above $7.00. In the past month, LINK has surged by more than 20% in value, making it one of the best-performing digital assets in the current market. The buying pressure continues to increase the price, with resistance levels being tested and broken.
At the time of writing, Chainlink is trading at $7.22, with a 24-hour surge of 1.16% and a seven-day increase of 8.90%, according to the data from CoinMarketCap. The current market capitalization of Chainlink stands at $4 billion, making it the 10th largest cryptocurrency by market cap. However, the 24-hour trading volume of LINK has seen a slight decrease, currently sitting at $188 billion.
The resistance level for the cryptocurrency is strong at $7.25, while the support level stands at $6.90. If the bullish pressure continues, Chainlink could potentially break through the $7.25 resistance level and continue its upward journey. However, on the downside, if the market sentiment turns negative, LINK could see a pullback towards the $6.90 support level.
The technical outlook on the hourly chart for Chainlink shows that the cryptocurrency is currently in a bullish pattern with minimal buying pressure. The Moving Average Convergence Divergence (MACD) indicator also suggests a bullish trend, with the MACD line above the signal line. Additionally, the Relative Strength Index (RSI) is currently above the 60 level, indicating a positive momentum for Chainlink’s price.
In conclusion, the recent surge in Chainlink’s price can be attributed to the movement of its supply from exchanges to secure cold wallets. This trend suggests a bullish sentiment among investors and traders, with potential long-term holding strategies being adopted. With its strong performance in the market and bullish technical outlook, LINK continues to be a top cryptocurrency to watch out for.
