Chainlink has surged nearly 12% over the past week, with substantial movement indicated by on-chain data revealing that investors have been increasingly withdrawing funds from exchanges.
LINK Withdrawal Patterns Indicate Investor Confidence
A recent update from digital asset analyst Sentora highlights an essential trend regarding Chainlink’s Exchange Netflow. This metric gauges the net inflows and outflows of an asset at centralized exchanges.
When the Netflow reads positively, it typically signals that more assets are being deposited than withdrawn, often indicating a selling sentiment that may lead to bearish market conditions.
Conversely, a negative reading suggests that outflows surpass inflows, indicating that investors are taking their assets off exchanges, likely for long-term holding. This trend can reflect an optimistic outlook and potentially bolster the asset’s price.
Below is a visual representation of Chainlink’s Exchange Netflow trend over the last ten days:
The graph reveals a consistent negative pattern in Chainlink’s Exchange Netflow, suggesting that more investors are withdrawing their assets from centralized platforms.
According to Sentora, “Exchanges have recorded a steady net outflow of LINK since June 20, amounting to approximately 3.86 million tokens valued at $51.26 million.” This withdrawal trend coincided with a price increase of nearly 12% over the week.
This scenario may signify that the ongoing outflows are being matched by accumulation activities among investors. However, it’s important to note that while withdrawals continue, the price gains have not seen sustained momentum and have tempered.
Nevertheless, the persistent shifting of Chainlink assets to self-custodial wallets indicates a favorable sentiment among holders, which could bode well for the cryptocurrency’s future performance.
In related developments, Bitcoin has also witnessed substantial outflows, as highlighted by X user Badwi Crypto, utilizing data collected by on-chain analysis firm Santiment.
The accompanying chart illustrates a reduction in Bitcoin’s supply held on exchanges, with a significant surge in withdrawals occurring earlier this month. After this outflow episode, the metric has shown a tendency to stabilize.
Current LINK Pricing Analysis
As of the latest figures, Chainlink is trading at approximately $13.22, reflecting a slight decrease of over 1% within the past 24 hours.
