On-chain data reveals that Chainlink has experienced a significant drop in its exchange reserves, a pattern that previously led to a substantial price rally. Analysts are optimistic about a potential bullish trend for LINK.
Points
- Chainlink exchange supply drops by 1.6% in the past month
- Previous similar drops led to significant price rallies
- On-chain data suggests strong demand from whales
- Potential for a bullish trend if similar patterns repeat
- LINK trading at $13.9, down 2% over the past 24 hours
On-chain data indicates that Chainlink （LINK） has recently seen a substantial decline in its exchange reserves, a pattern that previously resulted in a significant price rally for the cryptocurrency. According to analytics firm Santiment, the “Supply on Exchanges” metric, which tracks the percentage of LINK’s total circulating supply held on centralized exchanges, has dropped by 1.6% over the past month.
This notable decrease suggests that investors, particularly whales, are withdrawing their LINK tokens from exchanges, indicating strong demand and a potential long-term holding strategy. Historical data shows that previous significant drops in exchange reserves have often led to price rallies. For instance, a similar decline in December resulted in a 26% price increase for LINK, and another drop earlier in the year led to a 10% rally.
Currently, LINK is trading at $13.9, down more than 2% over the past 24 hours. However, if the current trend continues and LINK breaks out from its declining resistance line, it could trigger a substantial upward movement. Analysts have set potential price targets at $16, $18, and even $25 if bullish momentum gains traction.
解説
- Exchange reserve drop: A significant decrease in exchange reserves suggests strong demand from investors and potential long-term holding strategies.
- Historical patterns: Previous similar declines in exchange reserves have led to substantial price rallies, indicating a potential bullish trend for LINK.
- Whale activity: Increased withdrawals by large holders, or whales, support the bullish outlook and suggest confidence in LINK’s long-term value.
- Price targets: If the current trend continues, LINK could reach price targets of $16, $18, and potentially $25, driven by positive momentum and investor demand.