- LINK’s supply on exchanges and supply outside of exchanges graphs were closely knit.
- If LINK initiates a bull rally, it might face resistance near the $16 mark.
Chainlink [LINK] had a promising week as the token’s price surged in double digits, allowing investors to enjoy profits. While that happened, the token’s supply on exchanges dropped substantially, meaning that more investors were accumulating.
Does this hint at a further price uptrend in the coming days?
Is buying pressure on Chainlink high?
According to CoinMarketCap, LINK was up by more than 9% in the last 24 hours. At the time of writing, LINK was trading at $15.05 with a market capitalization of over $8.5 billion.
While the token’s price went up, its supply on exchanges plummeted, which is typically a bull signal. As per the latest tweet from Santiment, its supply on exchanges went below 15% for the first time in about 4 years.
🔗📈 #Chainlink enjoyed a mini breakout this weekend, hitting $15.82 for the first time in 2 weeks. The supply of $LINK on exchanges is below 15% for the first time in ~4 years, and the amount of >0 coin wallets is within 6% of its #AllTimeHigh. https://t.co/IodNDKZl5q pic.twitter.com/OLTFxfuVlw
— Santiment (@santimentfeed) January 15, 2024
Additionally, the number of >0 coin wallets was within 6% of its all-time high. These metrics clearly reflected how investors were buying Chainlink.
To double check whether buying pressure was high, AMBCrypto took a look at LINK’s metrics. To much surprise, we found that both LINK’s supply on exchanges and supply outside of exchanges graphs were closely knit, meaning that buying or selling pressure was somewhat neutral.
In fact, whales’ internet in LINK also dropped last week as its supply held by top addresses chart flattened last week.
Source: Santiment
A trend reversal incoming?
However, if the latest data is to be considered, the possibility of LINK initiating a bull rally couldn’t be ruled out.
FLASH, a popular crypto analyst, recently posted a tweet highlighting the possibility of LINK gaining bullish momentum. As per the tweet, LINK’s price might soon move upwards, resulting in a bull rally.
#Chainlink $Link 1w
Textbook cycle so far! 👌 pic.twitter.com/tQYI0cBov3
— FLASH (@THEFLASHTRADING) January 15, 2024
To better understand what to expect from LINK, we took a look at the token’s daily chart.
A look at its daily chart revealed that the Chaikin Money Low (CMF) went down sharply last week, which can put an end to the token’s bull rally.
However, a few metrics looked bullish, as its MACD displayed a bullish crossover. Its Relative Strength Index (RSI) also registered an uptick and was above the neutral mark, suggesting a price uptick.
Source: TradingView
Realistic or not, here’s LINK market cap in BTC‘s terms
Considering an utopian situation, if LINK manages to go up, there might be a few resistance zones that it might face.
An analysis of Hyblock Capital data revealed that LINK’s price might witness a resistance near the $16 mark, as historically it witnessed high liquidation near that mark.
Source: Hyblock Capital