LINK, the native token for the prominent decentralized oracle network Chainlink, has experienced a 5% increase in price over the last 24 hours. It is currently trading at $11.76, along with a 2% rise in trading volume during this timeframe.
On-chain data indicates that the altcoin is showing renewed bullish momentum, hinting at a possible double-digit rally soon. This analysis delves into the reasons behind this potential outcome.
Chainlink Sees Heightened Demand
One key indicator to note is LINK’s Exchange Netflow. The altcoin has consistently recorded negative exchange netflows over the past 30 days. As of Thursday’s trading session, 667,290 LINK tokens were withdrawn from cryptocurrency exchanges.
Exchange Netflow tracks the net volume of tokens moving in and out of exchanges. Negative netflows imply that more tokens are leaving exchanges than are entering, suggesting that holders are storing their assets off exchanges.
This trend typically indicates accumulation by investors. When holders transfer assets from exchanges, they usually move them to cold wallets or private storage for long-term holding. This behavior is a bullish sign for the market, as it decreases the token’s availability for speculative trading, thereby enhancing its price performance.
Read more: How to Purchase Chainlink (LINK) Using a Credit Card: A Comprehensive Guide
Additionally, Chainlink’s large investors, or whales, have been increasing their holdings, which supports the bullish perspective. Based on BeInCrypto’s assessment of LINK’s supply distribution, whale addresses with between 10,000 and 1,000,000 LINK have accumulated an impressive 11 million tokens within the past 30 days—an investment worth over $130 million at current market values.
This set of holders now collectively possesses 221 million LINK tokens, representing their highest balance since December 2017. The increase in whale accumulation is a strong bullish sign as it decreases LINK’s available supply, indicates confidence, and can also encourage retail investors to enter the market, all contributing to potential price increases.
LINK Price Forecast: Uptrend is Guaranteed If Demand Stays Strong
LINK is currently valued at $11.76, having bounced back from the support level of $11.24. The increasing demand for the altcoin, as indicated by a rising Relative Strength Index (RSI), is driving it toward resistance at $13.73.
With the RSI currently at 55 and rising, it shows that buying interest is surpassing selling pressure, indicating bullish momentum. A successful breakout above this resistance may pave the way for LINK to reach a target of $15.47.
However, if demand diminishes and LINK cannot overcome the resistance, it may decline to retest support at $11.24. Should this level fail to hold, Chainlink might experience a further drop to $9.98.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article serves informational purposes only and should not be taken as financial or investment advice. BeInCrypto is devoted to providing accurate and unbiased reporting, but market conditions can fluctuate without notice. Always perform your own research and seek advice from a professional before making any financial decisions. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
