12:00 p.m
3
min reading ▪ acc
Could Chainlink be ready for a comeback? In recent weeks, data on the chains shows a distinct trend: LINK is massively leaving crypto exchanges. While the cryptoecosystem is closely watching this record outflow, many are wondering if this accumulation could propel Chainlink to new heights.
Chainlink Release Wave: A Sign of Accumulation?
According to data from IntoTheBlock, a record volume of LINK is being removed from trading platforms to private wallets. This continued release of tokens could well reflect the accumulation strategy of investors who prefer to secure their LINKs rather than leave them exposed on exchanges, a stance often seen as a bullish signal.
If net trade flows are negative, they indicate a reduction in selling pressure: investors are placing their assets in cold storage, reflecting potential optimism about the future prospects of the LINK crypto price.
Additionally, by massively withdrawing their tokens, these users are contributing to limiting the amount of LINK available on the markets, a factor that could contribute to a price increase in the near future.
Social sentiment and pessimism: a potential turning point for LINK?
In addition to net flows, other interesting data is attracting attention: the weighted social sentiment around Chainlink. According to Santiment, this metric has fallen dramatically recently, indicating significant pessimism among investors.
However, in the cryptocurrency world, overly negative social sentiment can herald a bullish reversal. Crypto markets often operate against the expectations of the crowd, and this excess of fear, uncertainty and doubt (FUD) could represent an opportunity for LINK to recover.
This climate of disbelief comes as cryptoLink is showing a 4% increase this week and is trading around $11.4.
Such a reaction to prevailing pessimism could signal an unexpected uptrend if investors decide to take advantage of this moment of collective doubt.
With the massive delisting of LINK from exchanges and the gloomy social mood, all the elements are in place for a strong comeback for Chainlink. If this trend continues, the market could witness bullish momentum, fueled by the increased scarcity of LINK in circulation and the surprise effect. With a combination of token retention and a gradual return of confidence, Chainlink appears to be poised for a revival, potentially defying the most cautious predictions. Meanwhile, gold’s rally is holding bitcoin back.
Maximize your Cointribune experience with our “Read and Earn” program! Earn points for every article you read and get access to exclusive rewards. Register now and start reaping the benefits.
Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
Comment