Is Chainlink’s Price at Risk Following Two Consecutive Weeks of Negative Netflows?

Highlights:

• Chainlink records two consecutive weeks of negative netflows.
• The negative netflows signify massive whale accumulation with a positive LINK price impact.
• Market shift drivers could stem from new partnership deals involving Chainlink, Fidelity International, and Sygnum.

Chainlink’s (LINK) price could be in for a sudden turnaround following two back-to-back weeks of recording negative netflows. Interestingly, the net negative netflows imply heightened accumulation, which invariably indicates investors’ faith in LINK’s expansion prospect.

Remarkably, Chainlink’s negative netflows contradict massive exchange inflows recorded in June. Hence, the impact on Chainlink’s price should be positive, signifying that a LINK price breakout could be on the horizon. In addition, it seems to also hint at accumulating and hodling LINK patiently, pending its perceived imminent price boom.

Chainlink’s Negative Netflows Valuation

According to the renowned data analytical platform IntoTheBlock, LINK’s negative netflows amounted to about $110 million for two consecutive weeks. In a nutshell, it implies that investors have withdrawn Chainlink worth roughly $110 million from exchanges.

“Such activity is typically associated with an accumulation phase, indicating that investors are moving LINK off exchanges and into long-term holdings,” IntoTheBlock added to explain the massive token shifts.

Exchange netflows for $LINK have been negative for the past two weeks, with roughly $110 million worth of $LINK being withdrawn from exchanges during this period.

Such activity is typically associated with an accumulation phase, indicating that investors are moving $LINK off… pic.twitter.com/jSvKAkUQ5F

— IntoTheBlock (@intotheblock) July 12, 2024

Estimated Accumulated LINK Tokens from $110M

Meanwhile, At the time of press, Chainlink is changing hands at about $12.97 courtesy of a 3.9% upswing from the previous day. However, in its 14-day-to-date data, LINK recorded a 7.4% decline, with minimum and maximum prices falling between $11.15 and $14.65, respectively.

Considering the peak and minimum prices above, their mean value could reflect LINK’s average price in the past two weeks. Therefore, it becomes safe to say that in the past two weeks, Chainlink sold at a $12.9 average price. Notably, this estimation signifies that $110 million procured approximately 8.53 million LINK within two weeks at $12.9 per token.

67% Negative Netflows Occurred in the Past Week

Per IntoTheBlock’s Chainlink statistical summary, the past week saw negative netflows of about $73.77 million. Therefore, it signifies that 67% of the accumulation happened in the past seven days.

Meanwhile, other relevant statistics revealed that just 40% of LINK holders are making profits at the token’s current price. Four percent are neutral, while a whopping 57% are counting losses. Whale investors remain a significant population of the LINK holders pool, at 69%.

Santiment Corroborates IntoTheBlock Claims

Popular market intelligence platform Santiment recently released new Chainlink data, corroborating IntoTheBlock’s LINK whale accumulation claims. According to Santiment, LINK holders boasting 10,000 to 1 million tokens have accumulated the coin even during the market downtrends.

“Since June 24^th, they have added 9.2M LINK, a +4.65% increase to their collective holdings since that date,” the market intelligence platform reported on its verified X handle.

🐳📈 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

Upward Trajectory Gaining Momentum

Chainlink’s price is recovering from a downtrend that saw it dip below previously breached resistances at $13.258 and $13.033. While LINK will soon have signs of exceeding $13.033, $13.258 will likely pose a potent impedance. Notably, LINK has attempted to break above $13.258 several times in the past. However, most attempts turned futile, underscoring the level’s massive price suppression ability.

Moreover, in a highly bullish outlook, breaking above $13.258 becomes possible, with $13.482 posing as the next resistance level. Subsequently, attaining and exceeding $14.767 becomes feasible, culminating in a massive price rally. On the contrary, a domineering market decline could result in revisiting $11.255 and possibly dipping below the support.

LINK’s Negative Netflows Drivers

In the past 14 days, LINK touched a $11.15 low, which appears to be Chainlink’s all-time low, even down to its previous six-month timeframe. Therefore, chances are high that the price level was crucial in the massive accumulations recorded within the past two weeks.

In addition, Chainlink’s price recently signed a new partnership deal with Sygnum and Fidelity International. The collaboration will provide Net Asset Value (NAV) data on-chain for Fidelity International’s $6.9 billion money market fund.

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