The post Can Rising Outflows Fuel a Rally? appeared on BitcoinEthereumNews.com.

Development activity on the Chainlink blockchain has surged by over 14,000% in the past 30 days, highlighting heightened developer engagement. The LINK price Relative Strength Index (RSI) rose to 71, signaling increased buyer interest, while the Chaikin Money Flow (CMF) flipped positive at 0.17, reinforcing the notion of sustained buying activity. The Chainlink (LINK) price displayed signs of recovery from previous bearish trends with a notable 14% increase since yesterday, pushing its price to beyond $12.30. This rally coincided with a major movement of LINK tokens out of exchanges, suggesting massive accumulations. Chainlink Price Soars Amid Major Accumulation According to CryptoQuant data, the netflows for LINK on spot exchanges have been largely negative over the past month. Specifically, on November 4, LINK recorded its highest net outflows in 30 days with 400,000 tokens moved out of exchanges. For context, this pattern is often indicative of reduced selling pressure as traders withdraw assets, which indicates their expectation for potential price appreciation. Courtesy: CryptoQuant Currently, for further upsurge in this positive trend, LINK price momentum requires solid buying support. On the four-hour chart, several indicators suggest that buyer interest is increasing. The Relative Strength Index (RSI) surged to 71, indicating that bullish momentum has intensified. This sharp RSI increase suggests active buying contributed to the recent LINK price upswing Additionally, the Chaikin Money Flow (CMF), which gauges buying and selling pressure, flipped positive and reached a value of 0.17. This metric also points to sustained buying activity. If this trend continues, LINK could target the 1.618 Fibonacci extension level, which is estimated at around $13.13. Courtesy: TradingView The four-hour chart also shows a V-shaped recovery, indicating a strong bounce back from the recent downtrend with improved market confidence. At press time, the Chainlink price continued gaining with a 4.56% increase, trading at…

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Filed under: News - @ November 7, 2024 6:22 pm