The price of LINK has defied negative market sentiments despite the transfer of millions of tokens. The token, which powers a popular oracle protocol in the crypto industry, is currently trading at $6.7, showing a 10% gain in the past 24 hours.
This positive outlook is reflected in the overall market, with Bitcoin surging above $27,000 and Ethereum surpassing the resistance level at $1,650. The market cap has also seen a 1.7% increase, reaching $1.12 trillion, indicating a potentially bullish trend for the week.
In the past 24 to 48 hours, there have been significant transfers of LINK tokens from the protocol’s wallets to various platforms. This has sparked mixed reactions regarding the implications for the 20th largest digital asset.
Four Chainlink wallets, known for holding non-circulating LINK supply, transferred a total of 18.75 million LINK tokens worth approximately $125 million. Interestingly, all of these tokens were sent to Binance, with a smaller portion going to a multi-sg wallet.
On-chain data firm Lookonchain has revealed that this is not the first time such a massive transfer of LINK tokens has occurred. In fact, on March 4, another $95 million worth of LINK was transferred to Binance. Overall, the transfers of non-circulating supply of Chainlink to other platforms have amounted to $446 million on a quarterly basis. While these transfers have raised concerns, the price of LINK performed remarkably well on Monday.
Technical analysis shows a bullish trend, as the 50-day Exponential Moving Average (EMA) has crossed above the 100-day EMA. Traders considering joining the uptrend may want to wait for the LINK price to break above the upper descending trendline resistance or start the next recovery phase above $7.
However, it is important to note that there may be profit-booking at $7, so buying pressure must outweigh selling pressure to sustain Chainlink’s uptrend. If the LINK price is rejected and fails to maintain movement above $7, it might be wise to consider switching to short positions, as losses could increase to $6.4 and $6.1, respectively.