Along with Bitcoin, Ethereum, XRP, Cardano and many other altcoins, Chainlink has also had a bull run.
According to analysis by an analytics firm, Santiment says that although Chainlink has gained more than 40% since July, the asset is now exhibiting some sort of upside volatility.
Among many such indicators that point to the price action of Chainlink is the on-chain movement of idle coins. At the end of July, there was a transfer of huge amounts of coins to cold wallets. This type of movement is a positive indication as it indicates a fact that spending on the network has decreased.
Investors are more likely to steer clear of cryptocurrency transactions amid market volatility if their coins are in cold wallets, as this would involve moving their money to centralized exchanges and paying more money on an already crowded network.
Exchanges See Drop in Chainlink Supply
The next important indicator is the supply of Chainlink on crypto exchanges. This indicator suggests traders’ sentiment towards the overall market.
Here, the indicator reveals that most of the investors and traders are not in the mood to sell their holdings and that is the reason why the supply in the centralized exchange is shifting to cold wallets.
According to the statistic, only 18% of the asset’s supply is still available on centralized exchanges, a rather low figure that implies a scarcity of selling pressure on the cryptocurrency.
At press time, Chainlink (LINK) is trading at $8.59 after rising 7.20% in the past 24 hours.