Chainlink (LINK) Network-Wide Accumulation Leads to 10% Jump in 7 Days

3 mins
Updated by Ryan Boltman
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In Brief

  • LINK's price has surged 10% in the past week due to high demand and whale accumulation.
  • Over $110 million worth of LINK tokens have been withdrawn from exchanges in the past two weeks, signaling bullish investor sentiment.
  • Despite the price increase, LINK's CMF indicates a possible pullback, potentially dropping the token below $14.
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LINK, the native token that powers leading oracle network Chainlink, has witnessed a surge in demand amid the broader market recovery in the past two weeks. 

The asset’s price has surged by 10% in the past seven days and continues to enjoy the attention of whales who keep adding LINK tokens to their holdings.

LINK’s exchange netflows have been negative since July 4. Since then, over $110 million worth of LINK tokens have been withdrawn from exchanges. 

An asset’s exchange netflows measure the difference between the amount of a cryptocurrency moving into and out of exchanges. When a negative netflow is recorded, more tokens/coins are withdrawn from exchanges than deposited. This is a bullish signal that suggests less selling activity. 

Conversely, a positive exchange netflow indicates that more tokens/coins are deposited into exchanges than withdrawn. This signals that investors are preparing to sell, potentially leading to an asset’s value decline. 

Read More: How To Buy Chainlink (LINK) and Everything You Need To Know

Chainlink Exchange Netflows. Source: IntoTheBlock
Chainlink Exchange Netflows. Source: IntoTheBlock

As of July 16, LINK tokens worth $8 million were withdrawn from exchanges, according to IntoTheBlock’s data.

During the two weeks in review, LINK whales have ramped up their accumulation efforts. In a recent post on X, on-chain sleuth Lookonchain revealed that an unidentified whale or institutional investor has accumulated LINK since June 24.

93 new wallets have collectively withdrawn 12.75 million LINK tokens, valued at approximately $167 million, from the leading exchange Binance.

Also, crypto analyst Ali Martinez, in a post on X, found that LINK whales that hold between 100,000 and 1,000,000 tokens have collectively “bought up over 10 million $LINK in the last two weeks, totaling approximately $120 million.”

Chainlink Supply Distribution. Source: X
Chainlink Supply Distribution. Source: X

LINK whales have bought more tokens recently because the asset is undervalued. This can be gleaned from its market value to realized value (MVRV) ratios over various moving averages.

 For example, LINK’s MVRV ratios for the 30-day and 90-day moving averages are -4.43% and -10.85%, respectively.

Chainlink Market Value to Realized Value Ratios. Source: Santiment
Chainlink Market Value to Realized Value Ratios. Source: Santiment

This metric measures the ratio between an asset’s current price and the average price at which all its coins or tokens were acquired. 

When its value is below zero, it suggests that the asset’s market value is less than the average purchase price of all its tokens in circulation. When this happens, the asset is said to be undervalued. 

Historically, negative MVRV ratios offer a buying opportunity because the asset is deemed to trade below its cost basis. Therefore, traders can buy at a lower price and hope to sell higher.

Although LINK’s value has surged by double digits in the past week, its Chaikin Money Flow (CMF) remains trapped below the zero line and continues its downtrend. 

This indicator measures how money flows into and out of an asset. A bearish divergence is formed when an asset’s price rises while its CMF declines.

This divergence suggests that enough buying pressure does not support the price uptick; the asset may witness a pullback. 

If this happens, LINK’s value will fall below $14 to trade at $13.84.

Chainlink Analysis. Source: TradingView

However, the token may climb to $15.56 if it maintains its current uptrend. 

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment,...
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