Chainlink’s (LINK) supply on exchanges has notably decreased from 23.0% to 21.4% over the past 30 days, as highlighted by Santiment, a top analytic firm. This trend is significant because the last similar decline, which occurred between September 15 and October 14, saw LINK’s price surge by 123% over the subsequent four weeks. This pattern highlights the potential impact of reduced exchange supply on LINK’s price movements, signaling a possible bullish trend.
Santiment data further underscores the correlation between LINK’s exchange supply and its price. Late January 2024 witnessed a 26% price increase with a 0.7% decrease in exchange supply. In late February 2024, a 10% price rise was accompanied by a 1.1% decrease in supply. The most recent data shows a 7% price increase with a 1.6% drop in exchange supply from June to July 2024.
This pattern suggests that as more LINK is moved off exchanges, likely into private wallets, the selling pressure decreases. This trend indicates that holders are less likely to sell their tokens quickly, which could drive the price up.
As further noted by BeingInvested, a CoinMarketCap analyst, the number of addresses holding significant amounts of LINK has increased. Addresses holding between 100,000 and 1 million LINK rose by 18%, while those holding between 1 million and 10 million LINK surged by 26.03%. This increase in large holders indicates growing interest and investment in Chainlink, reinforcing the bullish sentiment.
At press time, Chainlink’s price was $13.85, reflecting a 2.39% decrease over the past 24 hours. Its market cap is approximately $8.42 billion, placing it at the 15th position among cryptocurrencies.
Unveiling Chainlink’s Rising Potential: What Lies Beyond $14.35?However, the 24-hour trading volume has dropped by 33.57% to about $274.73 million, indicating reduced trading activity. The price trend over the past day shows a downward movement from a high of $14.47 to the current level. Short-term recovery attempts have been followed by further declines, suggesting persistent selling pressure.
Chainlink’s 1-day RSI is at 49.55, indicating a neutral market stance. The 1-day MACD trading above the signal line suggests a period of consolidation before a potential move in either direction.
