The supply of Chainlink (LINK) tokens on cryptocurrency exchanges has dropped significantly on exchanges, paving the way for a parabolic rally.
According to the on-chain analytics platform Santiment, the supply of LINK tokens on cryptocurrency exchanges has dropped from 23% to 21.4% in the last 30 days. The 1.5% drop in LINK supply on exchanges comes as token holders show diamond hands and refuse to sell.
Santiment compared this drop to last year between September 15 and October 14, when LINK made an over 123% rally. If this trend repeats in the next four weeks, LINK could reach multi-month highs.
Chainlink's supply on exchanges has dropped from 23.0% to 21.4% in just the past 30 days. The last time we saw this level of decline of LINK coins on exchanges, from Sep. 15 to Oct. 14, the 15th ranked market cap coin surged +123% over the next 4 weeks. pic.twitter.com/K9zPOAwdiz
— Santiment (@santimentfeed) July 22, 2024
LINK was trading at $13.94 on July 23 at 08:23 a.m. after a slight 3% drop in the last 24 hours.
While the current trend appears bearish, analysts are optimistic that LINK could head to a bullish breakout.
Trader @CryptoMichNL on X believes that LINK is testing the areas of the previous breakout levels. With the price breaking out of the 550-day range, an uptrend was on the horizon, with LINK set to follow its 2021 pattern.
If this bullish pattern continues, LINK will be on the way to creating a new all-time high, with the next price target being $18. If LINK bulls can sustain the uptrend, the long-term price target for LINK lies at $35.
Whales Are Buying the Dip
The recent dip in LINK prices has triggered a notable interest in the token by whale addresses.
Analyst @Ali_Charts recently stated that whales have accumulated 8.46 million LINK tokens in the last three weeks, which are worth more than $118 million.
The Chainlink whale address holding between $100,000 and $1 million LINK tokens currently stands at $134 million, a multi-month high.
According to the analyst’s chart, LINK whales have gradually accumulated tokens since April this year, coinciding with a bold price recovery.
A whale transaction by Whale Alert further shows heightened activity by Chainlink whales. A LINK whale address moved 3.6 million LINK tokens, valued at more than $51 million.
The bullish sentiment around LINK comes from Chainlink co-founder Sergey Nazarov, who opined that the traditional finance (TradFi) system would connect with the decentralized finance (DeFi) industry through Chainlink.
“Once the world’s largest asset managers and banks are onchain, the next step is connecting them to the DeFi protocols already powered by Chainlink,” Nazarov stated.
