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Chainlink: Are these catalysts pointing towards a rally?

2min Read

Chainlink’s dynamic ecosystem witnesses a surge in new addresses and LINK withdrawals, impacting liquidity and fueling a bullish trend, propelling LINK past the $7 mark.

Chainlink: Are these catalysts pointing towards a rally?

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  • 81 new addresses created have withdrawn over $31.5 million worth of LINK tokens.
  • LINK has crossed the $7 price level with its latest uptrend.

Chainlink [LINK] has recently experienced significant activity and developments within its ecosystem and token. One noteworthy occurrence involved the emergence of new addresses on the platform, with users both depositing and withdrawing LINK tokens from exchanges.


Read Chainlink’s [LINK] Price Prediction 2023-24


Chainlink sees more new addresses

A 22 September report by Lookonchain has highlighted a notable surge in new Chainlink addresses of late. The data indicated that the number of these fresh addresses had increased to 81 as of this writing. 

These addresses have collectively withdrawn more than 4.7 million LINK tokens from Binance [BNB], equivalent to over $31.5 million. This recent uptick in LINK withdrawals marked a significant increase compared to what was reported earlier this week.

During that period, approximately 35 wallets were created, and roughly $5 million worth of LINK tokens were withdrawn from Binance.

Exchange flow reflects Chainlink’s outflow

The CryptoQuant exchange flow metric indicated that the recent withdrawals have indeed impacted the flow of Chainlink. The chart illustrated a noticeable increase in outflows over the past few days since these withdrawals commenced.

At the time of this report, the exchange flow was recorded at approximately -247,900, signifying a net negative flow. 

Chainlink exchange netflow

Source: CryptoQuant

Additionally, the continuous outflow of these tokens from the exchange has resulted in a liquidity decline of LINK.

This reduction in liquidity could potentially trigger scarcity concerns and raise FUD (Fear, Uncertainty, Doubt) in the market, potentially contributing to an increase in LINK’s price.

Supply distribution shows an accumulation trend

According to Santiment’s supply distribution chart, there have been notable changes in Chainlink holdings of various address categories in the past few weeks.

Addresses with holdings ranging from 1,000 to 10,000 coins and 100,000 to 1 million coins have shown consistent increases during this period. 

Chainlink supply distribution

Source: Santiment

However, the most significant change has been observed in addresses holding 10,000 to 100,000 coins. The chart indicates a substantial spike in this category, particularly around 17 September.

As of this writing, this group has surged from approximately 7.8% to over 8% of the total supply.

LINK-up

The recent price trend of Chainlink has been intriguing to follow, with more upward movements than declines over the past 12 days, as observed on its daily timeframe chart.


Realistic or not, here’s LINK’s market cap in BTC’s terms


On 22 September, at the close of trading, LINK had surged by over 4.4%, reaching a trading price slightly above $6.9. As of this writing, it has surpassed the $7 price level, with a modest increase of less than 1%. 

LINK/USDT price trend

Source: TradingView

Moreover, the asset was in a strong bullish trend, as evidenced by its Relative Strength Index (RSI) line surpassing the 60 mark as of this writing.

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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