Highlights:
- IntoTheBlock reported in one of its latest tweets that Chainlink has consistently maintained extended negative exchange netflows.
- The spotted trend implies that spenders are actively accumulating LINK.
- LINK’s price registered declines to contradict market participants’ token procurements trend expectations.
Renowned on-chain analytical outlet IntoTheBlock has spotted a new trend relating to Chainlink’s (LINK) movements into and out of exchanges. According to the on-chain tracker, LINK has displayed consistent negative exchange netflows for almost a month.
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Explaining what the token movement pattern signifies, IntoTheBlock noted that it implied heightened withdrawals from exchanges. “This trend often signals accumulation, as holders move assets to cold storage or private wallets, reducing immediate sell pressure,” the analytical outlet added.
$LINK has seen consistent negative exchange netflows for almost a month, indicating sustained withdrawals from exchanges.
This trend often signals accumulation, as holders move assets to cold storage or private wallets, reducing immediate sell pressure. pic.twitter.com/iDLqEPbt0E
— IntoTheBlock (@intotheblock) October 23, 2024
On IntoTheBlock, obtaining exchange netflows value implies subtracting the volume of coins entering exchanges from those leaving. Consequently, a negative value suggests that the number of tokens exiting trading platforms exceeded those returning to exchanges. Therefore, it corroborates the analytical firm’s inference in its shared tweet.
Impact of Accumulation Trend on LINK’s Price
Based on IntoTheBlock’s submission, one could assert that investors are displaying significant faith in LINK’s price expansion prospect. Therefore, most market participants will anticipate positive market action movements from the token.
However, contrary to conventional sentiments, LINK’s price reflected a 6.9% decline in the past 24 hours with about $11.30 in selling price. While the general crypto market’s 3.8% decline might have influenced Chainlink’s short-term drop, the coin’s long-term variable was not impressive.
For context, in its month-to-date variable that aligns with the period of accumulation spotted by IntoTheBlock, LINK saw a 1.3% drop. Notedly, minimum and maximum price limits in the monthly time frame reflected levels ranging between $10.3 and $12.9.
The price extremes above imply that LINK has not recorded significant price jumps amid the massive procurements. However, like every other cryptocurrency, chances abound that the impacts could still play out later.
Meanwhile, other relevant variables revealed that LINK ranks as the eighteenth most valuable cryptocurrency on CoinGecko with a $7.09 billion market cap. Chainlink’s trading 24-hour volume is down by about 28.05% and has a $229.19 million valuation.
Profitable LINK Owners are Less Than 40% of the Holders’ Pool
At the time of press, Chainlink’s statistical summary on IntoTheBlock revealed that only 38% of LINK holders are making gains at the token’s current price. 3% of the token owners are neither losing nor gaining, while 60% of the holders are incurring losses.
Chainlink boasts a domineering large investor pool, reflecting 68%, with 78% in volume of long-term ( > a year) token holders. 21% of the token holders are intermediate (one month to one year) owners, while 2% are short-term (< a month) holders. In the past seven days, transactions exceeding $100K amounted to about $361.03 million, while total exchange netflows displayed a negative $35.81 million value.
Expert Advises Investors to Buy Chainlink Now
In a tweet making rounds, AltcoinCadet, a renowned market chartist boasting over 62K followers, has encouraged market participants to accumulate LINK now. According to the expert, he does not envisage Chainlink dropping below $10 again. He added that even if events become unfavorable and LINK eventually plunge below $10, the decline will persist transiently.
In his exact wordings, the expert asserted:
“I don’t see us going back under $10, but if we do, the dip will disappear quickly, so get in now before we add another zero.”
$LINK I don’t see us going back under $10 but if we do the dip will get eaten so quick so get in now before we add another zero @chainlink https://t.co/YLt2g20chW pic.twitter.com/jhvJnAiVTx
— AltcoinCadet (@AltcoinCadet) October 23, 2024
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