Chainlink sees $120 million outflows amid price recovery

Chainlink (CRYPTO:LINK) has experienced a month-long trend of net outflows from centralised exchanges, according to on-chain data analysed by market intelligence platform IntoTheBlock.

Exchange Netflow measures the net amount of LINK tokens moving into or out of wallets associated with centralised exchanges.

A negative Exchange Netflow indicates more tokens are leaving exchanges than entering, which often signals investors are withdrawing coins for long-term holding rather than selling.

The data shows that over the past month, Chainlink’s Exchange Netflow remained predominantly negative, with net outflows totaling approximately $120 million.

This sustained withdrawal of LINK from exchanges suggests accumulation by investors during this period.

Coinciding with the outflows, Chainlink’s price has seen some recent recovery, which could be linked to this buying activity.

The future direction of the Exchange Netflow metric will likely influence LINK’s price movement, where continued outflows could support further gains, while a reversal to positive inflows might indicate selling pressure.

Analyst Ali Martinez shared on X that the cost basis distribution of LINK holders reveals a significant concentration of 181.42 million tokens purchased between $14.32 and $16.43.

These investors are currently holding at a loss and may act as resistance if the price tests this range again, potentially selling to break even.

“When the indicator has a positive value, it means investors are depositing tokens to exchanges, often for selling purposes, which can be bearish,” IntoTheBlock noted.

“A negative value suggests investors are moving coins off exchanges, typically indicating long-term holding and a bullish signal,” the statement noted.

At the time of reporting, the Chainlink (LINK) price was $14.64.