Chainlink (LINK) has recently experienced a significant price increase, driven by on-chain data revealing a substantial outflow of the asset from centralized exchanges.
Surge in Chainlink Exchange Withdrawals Precedes Price Increase
Analyst Ali Martinez highlighted in a recent post on X that Chainlink’s Exchange Outflow has seen a notable spike in the last 24 hours. This “Exchange Outflow” metric tracks the total amount of Chainlink being withdrawn from wallets linked to centralized exchanges.
A high value in this indicator suggests that investors are moving large quantities of tokens off exchanges. Such movements typically indicate long-term holding preferences, which can be a positive sign for the asset’s price.
Conversely, a low outflow figure means there’s less demand for removing coins into self-custodial wallets. Depending on the corresponding trend in the Exchange Inflow metric, a low outflow can be seen as either bearish or neutral for the cryptocurrency.
Below is a chart illustrating the recent trend in Chainlink’s Exchange Outflow over the past weeks:
The graph indicates a significant spike in Chainlink’s Exchange Outflow over the last day, showing that a considerable quantity of the asset has exited these platforms.
Overall, investors have withdrawn over 3.32 million LINK from exchanges, valued at approximately $50.91 million at the current rate. Given this scale, it’s likely that these withdrawals are attributed to whale activities.
The spike correlates with a sharp recovery rally in Chainlink, suggesting that the withdrawals may have been linked to new buying from whale investors expecting a price increase.
This trend in Exchange Outflow should be monitored, as further spikes could signal a continuation of the recent 13% price rally for LINK.
In related news, Ethereum, the second largest cryptocurrency, has also reported considerable outflows recently, as noted in a CryptoQuant Quicktake post.
Ethereum Exchange Netflow" width="1280" height="720" title="Chainlink Jumps 13% Amid Rising Exchange Outflows-Bitrabo">
The graph illustrates a notable decline in Ethereum’s Exchange Netflow on Binance prior to its rally, indicating that net withdrawals were occurring on the platform.
Current LINK Price
Currently, Chainlink is priced around $15.3, reflecting an almost 14% increase in the last 24 hours.
