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Chainlink up nearly 12%, are funds leaving the exchange the reason for this price increase?
Chainlink’s price has seen a nearly 12% increase in the past week, with data showing investors are consistently withdrawing their coins from exchanges.
Sentora, a provider of institutional DeFi solutions, said in a new report on exchange net flow that this metric for Chainlink has been negative for the past ten days, meaning that the number of coins leaving major exchanges during this period has been greater than the number of coins entering them.
A positive exchange net flow is a sign that investors are depositing their coins on exchanges, which is usually done with the intention of selling and can have a negative impact on the price.
Conversely, a negative net flow shows that users are moving their coins to self-custody wallets, which indicates a long-term investment and can lead to an increase in the price.
According to the report, since June 20, about 3.86 million Chainlink Link tokens, worth around $51.26 million, have been removed from exchanges.
This trend seems to be consistent with the price increase, suggesting that investors are accumulating rather than selling.
However, the price increase was mostly for a sharp but short period, and the market has since calmed down.
Bitcoin, meanwhile, has also seen a trend of funds leaving exchanges, as reported by an on-chain analyst.
The supply of Bitcoin that is tied to exchanges has been declining since the beginning of the year, with a rapid outflow in recent months, but this trend is now stabilizing.
The price of ChainLink is currently around $13.22, down more than one percent in the past 24 hours.
Investors transferring control of the coins to their own control is a positive sign that could provide a basis for price stability and potential increases in the future. Can ....
