Chainlink Price Forecast as 10M LINK Tokens Exit Exchanges
Highlights
- 10 million LINK tokens exit exchanges, reducing supply and signaling potential bullish momentum
- Chainlink's price recovery hinges on breaking the downward resistance trend line
- Increased long positions suggest growing confidence among traders in LINK's future
Chainlink (LINK) price seems bullish as 10 million LINK tokens leave centralized exchanges, signaling potential accumulation. This significant movement suggests reduced selling pressure and growing confidence in LINK’s future, potentially paving the way for a bullish trend. Could this mark Chainlink’s next breakout?
Can Chainlink Price Recover as Nearly $10M LINK Exits Exchanges
According to Santiment, between December 20 and January 15, the supply of Chainlink on exchanges dropped from 226.90 to 217.23. Nearly 10 million LINK tokens have exited centralized platforms, representing a 4.30% decrease. This massive withdrawal reduces the available supply for sale, a critical factor that could signal less selling pressure and possible upward momentum for LINK price in the short term.
LINK Supply on Exchanges
The decrease in LINK tokens available on exchange suggest a reduced supply for sale, which may help ease selling pressure, especially following the crypto market crash on 13th January that impacted many assets. With fewer tokens up for grab, demand from buyers could surpass the selling activity, potentially triggering a price rebound.
LINK Technical Analysis: Can Price Bounce?
Between December 10, 2024 and January 15, Chainlink price formed a falling wedge pattern. This technical formation has a bullish bias and contains a set of lower highs and lower lows connected using trend lines.
A decisive daily candlestick close above the upper trend line will confirm a breakout. In such a case, the target for LINK can be obtained by measuring the distance between the first swing high and swing low and adding it to the breakout point.
For Chainlink, the measured move is 29%, adding this to the breakout point of $21.73, reveals a target of $28.17.In case of massive spike in buying pressure, this move could extend, pushing LINK to sweep the equal highs formed at $30.94.
Based on CoinGlass data, Over the past four hours, the long ratio has increased from 44.09% to 50.61%, showing that bulls are actively driving the Chainlink price higher.
Overall, the outlook remains strong with technicals and fundamentals pointing to a promising future for LINK. Chainlink price prediction hints a potential rally to $30.
Frequently Asked Questions (FAQs)
1. What does the recent withdrawal of 10 million LINK tokens indicate?
2. How does the decrease in LINK on exchanges impact its price?
3. What is needed for Chainlink to confirm a bullish trend?
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