Chainlink Supply on Exchanges Decreases, Indicating Bullish Potential
Data from Santiment reveals that the supply of Chainlink (LINK) on exchanges has recently decreased, which could be a positive sign for the asset’s price. When the supply on exchanges decreases, it suggests that holders are accumulating their coins rather than selling them, potentially leading to a price increase. This trend has been observed in the past, with LINK experiencing an uptrend when the supply on exchanges declined. The current supply on exchanges is around 15.5%, indicating a potential rebound for LINK. However, it is worth noting that the behavior of whales, large investors, has been different this time compared to the previous correction in June. The whale transaction count has decreased, indicating decreased activity and lack of interest in buying the dip. Support from whales may be necessary for LINK to turn around.
Main Takeaways:
- The supply of Chainlink on exchanges has decreased, suggesting accumulation by holders.
- Historically, when the supply on exchanges drops, LINK has experienced an uptrend.
- The current supply on exchanges is around 15.5%, indicating potential bullish divergence.
- The behavior of whales, large investors, has been different this time compared to previous corrections.
- Whale transaction count has decreased, indicating decreased activity and lack of interest in buying the dip.
Hot Take
While the decrease in Chainlink supply on exchanges is a positive sign, the lack of support from whales may hinder a significant price rebound. The asset’s price has been relatively stagnant since the crash earlier this month, trading around $6. It remains to be seen whether the current bullish divergence will lead to a sustained uptrend for LINK.
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