LINK, the native token of the leading decentralized oracle network Chainlink, has noted a 5% price surge over the past 24 hours. It currently trades at $11.76, with a 2% hike in trading volume during that period.
On-chain, the altcoin shows signs of renewed bullish momentum, suggesting a potential double-digit rally in the near term. This analysis explores why this is bound to happen.
Chainlink Witnesses Increased Demand
LINK’s Exchange Netflow is the first indicator worthy of note here. The altcoin has recorded consistent negative exchange netflows over the past 30 days. On Thursday, the trading session ended with 667,290 LINK tokens taken out of cryptocurrency exchanges.
An asset’s Exchange Netflow measures the net amount of its tokens flowing into or out of exchanges. Negative netflows occur when more tokens are leaving exchanges than entering them, suggesting that holders are moving their holdings off exchanges.
Such a trend typically signals accumulation by holders. When holders withdraw assets from exchanges, they often transfer them to cold storage or private wallets for long-term holding. This is a bullish signal for the market as it reduces the token’s availability for short-term trading, improving its price action.
Read more: How to Buy Chainlink (LINK) With a Credit Card: A Step-By-Step Guide
Furthermore, Chainlink’s large investors or whale addresses have increased their holdings, supporting the bullish outlook. According to BeInCrypto’s analysis of LINK’s supply distribution, whale addresses holding between 10,000 and 1,000,000 LINK have accumulated 11 million tokens in just 30 days — an investment exceeding $130 million at current market prices.
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Author: Abiodun Oladokun
