Chainlink, the leading middleware platform for linking on-chain dapps with external data, has seen a recent struggle for momentum. However, there are signs that LINK holders are accumulating tokens, as on-chain data shows more holders moving tokens from exchanges like Binance and Coinbase. This could indicate that holders are confident about the future and interested in engaging with DeFi protocols to earn passive income.
The increased movement of tokens from centralized exchanges could lead to price expansion, which is favorable for LINK bulls. Currently, Chainlink has a top supply of 1 billion LINK distributed to over 721,000 unique addresses. Binance controls more than 4.2% of the total supply, with over $479 million worth of LINK under their control at spot rates.
With the net outflows from exchanges, there is a chance that LINK will find support and resume its recent uptrend. However, for a sustained rally to occur, LINK needs to decisively break above resistance levels at $12.3 and the double top around $13. If Ethereum prices recover and DeFi and NFT demand increase, this could further boost LINK’s growth.
Additionally, the recent launch of Chainlink Labs’ Cross-Chain Interoperability Protocol (CCIP) Private Transactions could also be a price driver. This feature allows for data privacy in cross-chain transactions, enabling secure connections between private chains and other ledgers for sharing sensitive information.
Overall, there are indications that LINK holders are accumulating tokens and with positive on-chain data, there is a possibility of a LINK breakout in the near future.