- Over six million LINK tokens have been withdrawn from exchanges in the past week, signaling growing investor confidence and reduced selling pressure.
- LINK is currently facing resistance at $10.79. Breaking past this level will be a stepping stone as it will next challenge the $12.35 barrier, doing away with single digit token price.
In the last seven days, more than 6 million tokens have been withdrawn from cryptocurrency exchanges signaling a rise in investor confidence. This massive exodus showcases that more LINK holders are opting to have their LINK digital assets in private wallets rather than on exchanges. Also, this move more often means reduced selling pressure and points to a rise in the market.
In accordance with data provided by Glassnode, the massive withdrawal of LINK tokens began on September 10. Notably, this massive cash grab came on the heels of a brief surge in exchange inflows that occurred between September 5 and 9. In this period, LINK’s price also dropped from nearly $11 to $9.20, causing a sell-off as investors aimed to minimize losses. However, that being a fleeting moment, LINK’s price started to recover, and the outflow of tokens from exchanges became minimal.
Come September 16, the amount of LINK out of exchanges had surpassed 6 million tokens. This being a drastic shift in investor sentiment, this move signals a bullish signal as it reduces the overall supply of the token available for sale, and with the low supply, the high-demand marketing scheme supports LINK’s price appreciation.
At the time of writing, LINK is swapping hands with $10.57 recording a 0.74% price decline in the last 24 hours. Additionally, this current market price represents a 1.58% and 4.76% surge in the past week and month respectively. If the trend of increases withdrawals continues, word from analysts has it that the token could retest the$12 mark and potentially aim for a higher price target.
LINK Technical Analysis
Currently trading near $10.66, it is facing resistance at $10.79. Breaking past this level will be a stepping stone as it will not challenge the $12.35 barrier, potentially leading to increased price surges. Additionally, if the same bullish trend is maintained, LINK’s price could surge to $12.94. Going past this level, LINK could be on the verge of a six-month high for the altcoin, aiming for $13.00, representing a 15% increase. A successful breakthrough could further bolster bullish sentiment in the market.
Providing additional evidence that supports the bullish outlook for Chainlink, the Bulls and Bears indicator, a significant metric that tracks the number of addresses buying or selling significant volumes of LINK, suggests that the Bulls have outwitted the Bears in the past few days. This impressive metric further bolsters investors’ confidence in LINK’s long-term value.
On top of that, the Parabolic Stop-and-Reverse indicator increases confidence. The SAR tracks the direction of an asset’s price and signals when a trend is likely to reverse and this time, this metric has flashed a bullish signal.
