Chainlink (LINK) Whales Accumulate 1.4 Million Tokens as Exchange Outflows Decline: Will LINK Price Rise?

Chainlink [LINK] has been at the center of crypto investors’ attention after a recent significant surge. In the last three days alone, LINK surged by about 18% after its bounce off from the key support zone at around $19.

Chainlink [LINK] has been closely observed by crypto investors following a recent significant surge. The token experienced a 18% rise over the last three days alone, following its bounce off from the key support zone at around $19.

This rebound highlights the asset strength despite the volatile market conditions.

A substantial increase in whale activity further contributed to the rally, as noted by a renowned analyst. According to their analysis, large holders have purchased over 1.40 million LINK in the last 96 hours.

Such large-scale accumulation often indicates a growing confidence among Chainlink major investors, potentially signaling long-term bullish sentiment.

Chainlink whales show confidence, despite declining exchange outflows

A closer examination of Chainlink’s on-chain metrics by AMBCrypto revealed positive trends for the token.

The exchange outflows, which typically indicate the movement of tokens away from trading platforms, have gradually decreased over the last three days.

This suggests that fewer Chainlink holders are moving assets to exchanges for potential sell-offs, indicating market optimism.

Source: Santiment

Interestingly, while the Long/Short Ratio was bearish, short positions were slowly declining as indicated by the Coinglass data. This trend might be attributed to profit-taking after the recent rally.

However, the steady accumulation by whales suggests a focus on long-term gains rather than short-term speculation.

Chainlink whale activity and market outlook

The sustained accumulation by whales could be a signal for further price rally. Historically, increased whale activity has often preceded bullish rallies in the crypto market.

If this trend continues, Chainlink could experience a stronger upward momentum in the coming days.

Moreover, the sluggish declining presence of long/short ratio supports the possibility of reduced selling pressure.

Combined with whale confidence, this scenario could pave the way for Chainlink to test higher resistance levels.