Following Donald Trump’s inauguration on Monday, the cryptocurrency market is stabilizing after a period of heightened volatility, maintaining a broadly bullish sentiment. Bitcoin, the leading cryptocurrency, has surged 4% today, boosting recovery momentum across major altcoins, including LINK. Chainlink’s price is currently forming a bullish flag pattern, signaling a potential major breakout as the supply of LINK on exchanges continues to decline.
According to Coingecko, the LINK’s market cap is at $17 Billion, and the 24-hour trading volume wavers at $1.9 Billion.
Key Highlights:
- The market analyst highlights a substantial outflow of LINK tokens from crypto exchanges, signaling the active accumulation trend.
- The formation of flag patterns drives the current correction trendline in Chainlink price.
- The 100-day exponential moving average acts as key pullback support for crypto buyers amid market correction.
LINK’s Exchange Outflows Hit 770K
On-chain data from Santiment reveals that over 770,000 Chainlink (LINK) tokens were withdrawn from cryptocurrency exchanges in a single day. Highlighted by analyst Ali Charts, this significant movement has captured the attention of the crypto community, as such large-scale withdrawals often indicate a shift in market sentiment.
The withdrawal volume, which exceeds typical daily averages, suggests that investors may be transferring their holdings to cold storage for long-term holding or preparing for strategic deployment elsewhere.
Historically, the reduced supply on exchange has coincided with price recovery as it indicates rising demand and plunged selling pressure on the open market.
Chainlink Price: Flag Breakout Hints End-of-Correction trend
From January’s second week, the Chainlink price has witnessed a significant recovery from $17.8 to $26.9, registering a 50% growth. This upswing, when analyzed in the daily chart, shows the formation of a bullish continuation pattern called a flag.
The chart setup is characterized by an ascending pole representing the dominating trend and two downswing trendlines displaying temporary pullback. Theoretically, the pullback should asset LINK price revive the prevailing bullish momentum.
Amid a bullish crossover state between daily EMAs (20, 50, 100, and 200), the coin price teased an update breakout from flag resistance. A successful breakout with the daily candle will surge the market buying pressure and drive to $40.
Also Read: Banking Sector Set To Embrace Crypto: Bank of America CEO
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