Chainlink Crypto Soars Amid Supply Crunch: Analyst Eyes $50 Target

• Supply on exchanges drops by 0.95%, showing bullish holding behavior.
• Chainlink crypto price surged 11% this week, reflecting bullish cues.

Chainlink crypto supply on exchanges is reportedly running low for the last few weeks, which led to the demand surge in the token. Last week, LINK price soared more than 10% amidst decreasing supply on exchanges.

At press time, Chainlink price was trading at $24.06, noting a decline of over 2.90% in the past 24 hours. Its market capitalization stood at $15.34 Billion, ranked 11th among the top crypto coins.

How is LINK Exchange Supply Shaping Market Sentiment?

LINK’s exchange supply continues to drop, signalling a demand surge. Over the past month, the volume of exchange supply dropped over 0.95%, which indicates easing selling pressure.

This decline in supply usually implies that particular tokens are no longer available on exchanges and are stored in wallets. In that case, holders most likely will not sell and will try to keep the tokens for as long as possible.

This type of action reduces the available supply of the token in short-term trading, which results in a bullish sentiment.

In LINK’s case, this surge in demand has been observed and the altcoin is close to triggering a massive rally.

Apart from this, there are other factors that strengthen Chainlink’s positive outlook, such as the decrease in its Mean Dollar Invested Age (MDIA). LINK tokens in these wallets, on average, got 6.3% younger in the past month.

An increasingly younger Wallet suggests tokens are moving somewhere (whether via purchases, as a transfer, or via staking).

This shift in the chart is indicative of an increased activity in wallets because it is also largely considered that either fresh capital is entering the ecosystem or existing participants are repositioning their holdings.

Chainlink Crypto Positioned to Reach $50: Analyst Says

A recent post on X by Ali Charts highlighted that, Chainlink crypto is in the middle of a breakout. According to the analyst, the LINK token has registered a falling wedge breakout and started forming the higher high swings.

Currently, the altcoin has surpassed the 61.8% Fibonacci hurdle and is set for a major upswing.

It has bounced off the 100 day EMA mark and climbed beyond the key EMAs which highlights the increased accumulation. Once it crosses the $30 mark, significant short squeeze could be seen in the next sessions.

Chainlink Price Prediction: Decoding the Charts

Per the daily timeframe outlook, LINK token has cracked the downward trendline barrier and climbed above the key EMAs. The shorter EMAs lie above the longer ones and highlight the short term uptrend on the chart.

As it negates the selling pressure and significant decline in supply on exchanges clearly signals that large investors or smart money is not willing to sell their holdings.

It means that investors and traders were anticipating a potential bull run in the short term and loaded their bags before the fireworks.

Until the $18 support zone was defended by the bulls, the uptrend remained intact and a significant rise in the short term could be seen.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.