- LINK’s price may continue to increase irrespective of the rising exchange supply.
- Activity on the Chainlink network has been impressive, leading traders to hold bullish positions.
In the last 30 days, Chainlink’s [LINK] value has gained over 20%, bringing to life the predictions that the token was ready for an upward movement. As a result, LINK has become one of the best-performing assets as AMBCrypto reported earlier.
Read Chainlink’s [LINK] Price Prediction 2023-2024
LINK: Not your everyday crypto
However, there is something that makes Chainlink stand out from the rest, and Santiment, in its 25 September post on X (formerly Twitter) highlighted it.
According to Santiment, the same way LINK has experienced in surge in exchange inflows is the same way the supply to non-exchange wallets has improved.
But unlike the rest of the market, the increase in exchange inflow did not have a negative impact on the LINK price. The on-chain analytic platform also mentioned that it was like an “occasional tradition” for LINK to ignore this fundamental expectation.
?? #Chainlink continues to be one of the best #crypto performers in September. Unlike many other assets, its price often sees an initial lift when $LINK moves to exchanges. Its price is +23% in 2 weeks as exchange supply now flows back to cold wallets. https://t.co/mocTwCW3vR pic.twitter.com/juDXb70iTX
— Santiment (@santimentfeed) September 25, 2023
As of 24 September, LINK’s supply on exchanges jumped to 17.22%. Although it decreased at press time, the aftereffect of the increase was not a price slump. For the supply outside of exchanges, Santiment showed that it increased to 836.44 million.
This metric tracks each of the token’s supply being hoarded by market participants. So, the increase means that addresses not associated with any exchange are rising. Consequently, the chances of a potential sell-off are low.
Bulls have the edge
On the derivative side, Santiment revealed that Chainlink traders are bullish on price action. This was because the funding rate at the time of writing was 0.008%. Funding rates provide valuable insight into market dynamics and trader sentiment.
A high funding rate suggests a high interest in long-leverage trades. This indicates a bullish sentiment. On the other hand, a negative funding rate means the traders are bearish on the price action. In this instance, shorts pay longs a funding fee to keep their contracts open.
Source: Santiment
But LINK’s alliance was with the former. Therefore, there’s a chance that the token could build on its month-long increase.
Additionally, Chainlink has experienced an increase in active addresses. At the time of writing, LINK’s seven-day active addresses had climbed to 16,300. Active addresses show the number of unique addresses involved in LINK transactions daily.
Realistic or not, here’s LINK’s market cap in BTC terms
When the metric decreases, it means that crowd interaction or speculation around the token has decreased. Conversely, an increase in the active addresses suggests a hike in participation or speculation around the token.
Source: Santiment
Therefore, if LINK’s active addresses continue to increase, then it’s possible to see the price approach $8 or beyond.
