đŁ Chainlink Price Flashes Buy Signal as 18M LINK Leaves Exchanges
Chainlink price targets a move to the upside as 18 million LINK tokens leave exchanges in five days. Is a 20% rally imminent?
Chainlink (LINK) has flashed a buy signal as traders rapidly withdraw their tokens from exchanges, signalling that the token could be in an accumulation phase. Chainlink price trades at $13.22 with a slight 0.3% drop in 24 hours. Will the ongoing exchange outflow be the key driver for the next LINK rally, or will buyers have to wait longer before a breakout?
đž Chainlink Price Flashes Buy Signal Amid Exchange Outflows
Chainlink has recorded a notable spike in exchange outflows in the last five days, a sign that traders could be in an accumulation phase. This is typically a buy signal that may precede a supply squeeze if the trend continues while demand gradually rises.
LINKâs exchange netflows have recorded a significant drop, indicating that the number of tokens leaving exchanges is notably higher than the number of tokens that are entering exchanges.
According to this data, LINK netflows to exchanges have dropped from 17.96 million in June 20 to -472,000 LINK, indicating that traders have taken more than 18 million tokens from exchanges. These tokens would be worth more than $230 million at the current LINK price.
đž Reversal Setup Signals 20% Rally
Besides the surging exchange outflows, the technical structure further suggests that $13 could be an ideal entry price for Chainlink token buyers. This is due to the formation of a rounding top bullish reversal setup that signals the trend is about to revert to a bullish one.
The rounding top pattern is on the verge of maturity as LINK tests the neckline resistance level at $13.07. Bulls will have to create a series of green candles above this resistance to confirm a bullish Chainlink price prediction that will see the price trend higher.