Chainlink (LINK) has observed a sharp price jump as on-chain data shows a large amount of the asset has left centralized exchange wallets.
When the value of this metric is high, it means the investors are transferring out a large number of tokens from these platforms. Generally, holders withdraw from exchanges to hold for the long term in the safety of self-custodial wallets, so this kind of trend can be bullish for the asset’s price.
On the other hand, the indicator being low implies demand for taking coins away to self-custody is low. Depending on the trend in the opposite indicator, the Exchange Inflow, such a trend can be either bearish or neutral for the cryptocurrency.
Now, here is a chart that shows the trend in the Chainlink Exchange Outflow over the last couple of weeks:
As displayed in the above graph, the Chainlink Exchange Outflow has witnessed a large spike during the last 24 hours, a sign that a notable amount of the asset has left these platforms.
From the chart, it’s apparent that since the large outflow spike has come, Chainlink has seen a sharp recovery rally. This could potentially indicate that the withdrawals corresponded to fresh buying from whales who were anticipating the run.
Considering this pattern, the Exchange Outflow could now be to keep an eye on, as more surges in it could perhaps foreshadow a continuation to this 13% rally for LINK.
At the time of writing, Chainlink is floating around $15.3, up almost 14% in the last 24 hours.
