On-chain data shows Chainlink traders have made their largest amount of exchange withdrawals since December, a potential sign of accumulation.
Chainlink Exchange Netflow Has Seen A Sharp Negative SpikeWhen the value of this metric is positive, it means exchange inflows are outweighing the outflows and a net amount of the asset is entering these platforms. As one of the main reasons why traders deposit to exchanges is for selling-related purposes, this kind of trend can have a bearish impact on the LINK price.
Now, here is a chart that shows how the daily Exchange Flow Balance has changed for Chainlink over the last few weeks:
As displayed in the above graph, the Chainlink Exchange Flow Balance has been at negative levels for nearly all of April, suggesting that investors have been on a constant withdrawal spree. Recently, traders made a particularly high amount of outflows, with the Exchange Flow Balance observing a daily peak of 970,430 tokens (worth nearly $9 million), which is the highest value for the metric since December 2nd.
What initially followed this spike in exchange withdrawals was a surge in the LINK price to the $9.58 mark, but soon, the trend interestingly reversed as the cryptocurrency saw a retrace.
From the chart, it’s visible that the Chainlink Exchange Flow Balance has remained negative amid this drawdown, indicating that the bearish price action hasn’t caused enough panic selling to tip the market balance toward inflows. That said, that’s only the story so far. The metric could be monitored in the coming days to watch whether the net outflows continue or if deposits will make a return.
This massive withdrawal spree saw 34.94 million XRP (about $48.6 million) exit exchange-connected wallets.
LINK PriceFollowing its pullback since the weekend, Chainlink is returned to the $9.23 level.
