Chainlink Prints Mini Breakout as Rare On-Chain Metric Emerges

reportcryptos.com
3 Min Read

Chainlink (LINK) momentarily signaled its tendency for growth after recording a mini breakout, with its price touching $15.83 over the weekend.

Chainlink remains a token of interest in the digital currency ecosystem, considering its role in securing data through its oracles.

After a relative stalemate in price action over the past three months, LINK grew from $13.51 on January 1 to $15.68 at the time of writing after scoring a 3.68% surge in 24 hours.

According to data from the crypto analytics platform Santiment, Chainlink’s metrics are promising. Santiment noted that the supply of Chainlink on trading platforms is reducing, setting the pace for a supply crunch that might positively impact prices.

Image source: https://twitter.com/santimentfeed/status/1746790708688916693

Per the Santiment data, the percentage of LINK’s supply on exchanges has fallen below 15% for the first time in 4 years. Besides this, the amount of wallets with more than 0 LINK as their balance has also grown, drawing close to the All-Time High (ATH) figure.

In actual figures, the number of wallets with non-zero balances comes to 713,560. While this figure is lower than the ATH recorded around December 2022, it is the highest figure recorded to date since January 2023.

The ratio of LINK on exchanges has been recording sharp swings since at least late 2022, with the lowest levels since February 2020 ushered in this year. This metric is bullish, as it shows investors are safeguarding their LINK in cold wallets or got them locked in the protocol’s upgraded staking protocol.

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Chainlink is considered an undervalued token, seeing it maintains dominance over all other oracle networks in the industry. 

The current metrics might further catalyze a bullish surge in price if sustained over the long term. The move to $20 is speculative but not impossible.

Chainlink will need at least a 26% growth from the current price to retest $20, a feat that will mark its best performance since at least January 2020. With LINK’s promising outlook, time will tell how well its price will turn out to be.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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