Recent on-chain data indicates that Chainlink has been experiencing negative netflows in exchanges, which could be a positive signal for LINK’s price.
Negative Exchange Netflows for Chainlink Have Persisted for Almost a Month
According to a recent update from market analytics platform IntoTheBlock, the exchange netflow for Chainlink is currently trending downward. This metric tracks the overall amount of LINK that is being transferred to and from wallets linked to centralized exchanges.
A positive netflow indicates that exchanges are receiving more tokens than they are sending out. Investors typically deposit their assets to sell, which can lead to bearish pressure on the asset’s price.
Conversely, a negative netflow indicates that more tokens are being withdrawn from exchanges, suggesting that holders are planning to retain their coins long-term. This trend can result in a bullish outlook for LINK.
The following chart illustrates the exchange netflow trend for Chainlink over the previous month:
The chart indicates that Chainlink has maintained a negative netflow for several weeks, highlighting ongoing investor withdrawals from exchanges.
IntoTheBlock points out, “This trend often suggests accumulation as holders remove their assets from immediate selling pressure by transferring to cold storage or private wallets.” The impact of these outflows on LINK remains to be seen.
Additionally, Chainlink is showing other potential bullish signs, as noted by on-chain analysis firm Santiment in a recent X post.
One notable metric is the Weighted Sentiment, which gauges prevailing sentiment about an asset across major social media platforms.
This metric employs machine-learning technology to differentiate between positive and negative posts, generating a net sentiment score relative to the total volume of posts made that day.
The following table summarizes the changes in this sentiment metric across different timeframes for various cryptocurrencies:
The data shows that Chainlink recently experienced a significant drop in Weighted Sentiment by -372%, reflecting a fear, uncertainty, and doubt (FUD) among investors following recent price declines.
Historically, cryptocurrencies often counteract prevailing market sentiments, suggesting that extreme bearishness could set the stage for a bullish turnaround for LINK price.
Current LINK Price
As of this moment, Chainlink is priced at approximately $11.4, marking a 4% increase over the past week.
