Chainlink’s Exchange Supply Drops, Signals Potential Surge

Chainlink $LINK has seen a notable decrease in its supply held on exchanges, dropping from 23.0% to 21.4% over the past 30 days. Historically, such a reduction has been a precursor to significant price movements.

🔗🧐 Chainlink’s supply on exchanges has dropped from 23.0% to 21.4% in just the past 30 days. The last time we saw this level of decline of LINK coins on exchanges, from Sep. 15 to Oct. 14, the 15th ranked market cap coin surged +123% over the next 4 weeks. pic.twitter.com/K9zPOAwdiz

— Santiment (@santimentfeed) July 22, 2024

The last instance of a similar decline in LINK’s exchange supply occurred between September 15 and October 14, when the supply also decreased notably. Following this reduction, LINK, ranked 15th by market cap, experienced a 123% surge in the following four weeks. This historical context suggests a potential bullish trend for LINK shortly.

An analyst provided insights into LINK’s market cycle, emphasizing the importance of understanding the broader picture rather than getting caught in short-term market fluctuations. The analyst describes LINK’s current monthly chart as a “beast,” likening its current cycle to past patterns. The cycle is playing out predictably, and traders are encouraged to zoom out to appreciate the larger trends.

High Time Frame (HTF) Pattern

The analyst outlines LINK’s HTF pattern in detail, beginning with a bear market accumulation phase characterized by 18 months of sideways trading, seen as an optimal time to buy LINK. Following this bear market, LINK enters a breakout and rebasement phase, with another 10-12 months of consolidation, setting the stage for the bull market’s final phases. LINK is nearing the end of phase two and presents favorable entry points, holding the monthly 50MA and range lows as support. LINK’s first-ever “Golden Cross” on the weekly chart is also expected in late August or early September. The analyst predicts LINK bulls will begin the next leg up in October or November.

$LINK Monthly

A beast of a Monthly, this cycle is playing out like clockwork 🫡

Zoom out… #LINK is repeating the past cycle almost perfectly so far… and, like last cycle, it’ll leave traders behind who too often get caught up in LTF noise.

The @chainlink HTF pattern:
>… pic.twitter.com/BII7iXGmgY

— Crypto Kindie (@CryptoKindie) July 22, 2024

The analyst advises traders to stay focused and not be swayed by short-term market noise. Many missed out on LINK’s previous rally due to impatience during consolidation phases. The key is to “stick to the plan and execute.”

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