On-chain data shows that Chainlink continues to see negative exchange rate flows lately, a sign that could be positive for LINK’s value.
Chainlink Exchange net flows have been negative for almost a month
In a new after on The “exchange mains current‘ here refers to an indicator that tracks how much LINK enters or leaves the wallet associated with centralized exchanges.
When the value of this metric is positive, it means that these platforms receive a net amount of tokens. Since one of the main reasons investors send their coins to exchanges is for sales-related purposes, these types of trends can have bearish implications for the asset’s price.
On the other hand, the negative indicator indicates that the holders are withdrawing a net amount of the cryptocurrency from the exchanges. Holders generally self-manage their coins when they plan to hold them for the long term, so these types of trends could be bullish for LINK.
Here is a chart showing the trend in Chainlink exchange netflow over the past month:
The value of the metric appears to have been negative for a while now | Source: IntoTheBlock on X
As visible in the chart above, the net flow of the Chainlink exchange has been below zero for the past few weeks, implying that the investors have been continuously withdrawing funds from these platforms.
“This trend often signals accumulation, as holders move assets into cold storage or private portfolios, reducing immediate selling pressure,” IntoTheBlock notes. It now remains to be seen whether this net outflow will ultimately benefit LINK or not.
The negative exchange net flow isn’t the only potential bullish sign the cryptocurrency has seen recently, as on-chain analytics firm Santiment noted in an after.
The signal in question is for the Weighted sentiment statistic, which tells us about the sentiment regarding a particular item currently present on the major social media platforms.
This indicator uses the analytics company’s machine learning model to distinguish between negative and positive messages and calculate the net picture. It then weighs this value against the total number of posts present on social media that day (called ‘ Social volume).
Below is a table showing the changes in this metric on different time frames for different assets in the cryptocurrency sector.
The changes in the sentiment on social media for different assets in the sector | Source: Santiment on X
The table shows that Chainlink’s last daily change in weighted sentiment was a sharp reversal of -372%, implying that investors are feeling FUD after the recent bearish price action.
Historically, cryptocurrencies have tended to move against the expectations of the masses, so when traders become too bearish, a bullish reversal can become likely. So it is possible that the latest sharp negative sentiment could help LINK price.
LINKPrice
At the time of writing, Chainlink is hovering around $11.4, up 4% in the past week.
Looks like the price of the coin has plunged over the past couple of days | Source: LINKUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com