Chainlink price soared to a 60-day peak of $18.90 on Wednesday, May 29, extending its monthly timeframe gains to the 52% mark; recent on-chain movements suggest more upside could follow in June 2024.
Chainlink Price Hits 75-day Peak as Investors Anticipate RWA Breakout
Following the Ethereum ETFs approval by the US Securities and Exchange Commission (SEC), investors now anticipate a growth spurt in institutional involvement in the cryptocurrencies and digital assets.
Asset Tokenization and Real World Assets allow the trading of traditional financial instruments and securities to be traded on the blockchain platforms.
As an industry-leader providing off-chain prices feed to service the RWA and Asset Tokenization protocols, the Chainlink ecosystem has benefitted immensely from the growing popularity of this narrative in the after of the ETH ETF approval.
LINK price rose to a new monthly peak of $19.19 on May 29, bringing its May 2024 gains to the 55% mark.
The timing of the latest wave of the rally shows Chainlink price has been on an upward trajectory, since ETH ETF approval on May 23, as it quickly became one of the most-sought after Ethereum-hosted altcoins.
Investors Shift 600,000 LINK Tokens into Long-term Storage in 48 Hours
With the bullish narrative surrounding Asset Tokenization now clearly in play, investors within the Chainlink ecosystem are now making strategic moves to benefit from the imminent proliferation of RWA trading on the blockchain.
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In recent months, major institutional investment firms, including JPMorgan and BlackRock CEO Larry Fink, have talked up the revolutionary prospects offered by the Asset Tokenization narrative.
On-chain data trends show that since the ETH ETF approval on May 23, investors have been moving large amounts of LINK tokens into long-term storage.
IntoTheBlock’s exchange netflow chart shows the daily difference in exchange deposits and withdrawals. Negative netflows are bullish as it means that investors are shifting more tokens out of exchanges and trading wallets, than those being deposited.
Chainlink exchange net-flows have been trending negatively since May 24. According to the data, investors have now shifted 488,360 LINK tokens out of exchange-wallets into self-custody and other long-term storage options.
A persistent trend of negative exchange net flows is interpreted as a prime indicator of imminent bullish price action for two main reasons.
Firstly, negative exchange net-flows mean that a lesser number of tokens are readily available for trading. Valued at the current prices, the 488,360 LINK tokens withdrawn from short-term market supply are worth approximately $10 million.
As this $10 million supply squeeze coincided with the Chainlink demand surge triggered by the ETH ETF approval, it explains why LINK price entered a double-digit breakout to a 60-day peak of $19.19 on May 29.
More so, when investors keep making exchange withdrawals during such a considerable price rally, it suggests that the majority of holders are still anticipating more upside.
Chainlink Price Forecast: Clear Coast to $25?
Chainlink price is trading at 60-day peaks at the time of writing on May 29. But drawing insights from the $10 million exchange withdrawals made in the last 48-hours, it appears LINK holders are not looking to book profits yet.
Instead, Chainlink traders are opting for long-term storage, in hopes that a surge in institutional involvement in Asset tokenization and the ETH ETF inflows could trigger another breakout LINK price towards $25 in June 2024.
Looking at IntoTheBlock’s GIOM data, Chainlink’s price could break out above $25 if it scales the next major resistance around $22.
As seen in the chart above, 92,930 addresses that bought 51.3 million LINK at the average price of $22.83 could mount a major resistance sell-wall if they opt to book profits early.
But if the exchange outflows continue at the current pace, bulls could seize the momentum to drive a $25 breakout as predicted.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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