Chainlink (LINK) Gaining Popularity and Attention, Bullish Signs Ahead?

The surge in Chainlink (LINK) prices throughout February, reaching a striking two-year peak, has been accompanied by a flurry of investor interest.

This wave is evidenced by significant accumulation in LINK for long-term investment, marked by on-chain data revealing that over $200 million worth of LINK has been withdrawn from exchanges in the past two weeks.

Most of these withdrawals have found their way to staking platforms, contributing to a noticeable increase in the total value locked (TVL).

Chainlink (LINK) Gaining Popularity

At the heart of this financial movement is the impressive market performance of LINK, trading at $19.60, placing it with a market capitalization of $11.5 billion, making it the 12th largest crypto by market capitalization.

Despite experiencing a minor dip of 1.58 percent in the last day, LINK's trajectory has been largely bullish since late January.

According to Crypto News Flash reports, the crypto has witnessed a substantial rally from a monthly low of $13.58 on January 25 to a monthly high of $20.80 on February 12, marking its highest trading value in two years.

This recent bull run is a stark contrast to the latter part of the previous year, where LINK struggled to break the $17 resistance level, with several attempts throughout mid-November and December being rejected.

However, by establishing higher lows and strengthening its support, LINK managed to surpass the $17 mark earlier this month for the first time since January 2022, indicating strong bullish momentum. The surge in LINK's value is closely tied to exchange ownership dynamics and staking activities.

Specifically, data from Lookonchain shows a trend of newly created crypto wallets withdrawing millions of LINK tokens from exchanges, indicating a shift towards long-term holding, particularly on staking platforms, as LINK reserves on exchanges dwindle.

83 fresh wallets(may belong to the same institution) withdrew a total of 11,097,687 $LINK($216.4M) from #Binance in the past 2 weeks.

Address list:https://t.co/cYgH52rHzxhttps://t.co/JNuXc43l2I pic.twitter.com/u178vVVGiT

— Lookonchain (@lookonchain) February 17, 2024

Further analysis by CryptoQuant confirms this trend, with the net flow for LINK on exchanges mostly negative since the beginning of the month. This indicates bullish sentiment among investors, as a decrease in LINK held on exchanges typically signals preparations for long-term holding rather than immediate selling.

The largest withdrawal activity was observed on February 5, with over 2.1 million coins leaving exchanges.

At the same time, Chainlink's TVL has experienced a steady increase, rising from $603 million on January 26 to $878 million, indicating growing confidence in the utility and further growth potential of Chainlink.

Amidst this bullish backdrop, some market analysts see even greater potential for LINK price appreciation in the short term. A leading crypto influencer, known as Satoshi Flipper to his 180,000 followers, argues that LINK has easy 10x growth potential from its current position.

He emphasizes Chainlink's critical role in the blockchain ecosystem, highlighting its undervaluation and low risk as key factors driving his optimistic view.

"It's not just one of the most important projects in the world, but also one of the most underrated and least risky projects. I'm super comfortable parking as much capital as I want there," he added.

Satoshi Flipper's confidence is not unfounded, as Chainlink stands as a key project in the blockchain space, offering decentralized oracle services that securely and reliably facilitate real-world data transfers to blockchain networks.

This utility is fundamental for smart contract operations and decentralized applications (dApps), spanning various industries from finance to insurance, and contributes to Chainlink's perceived value and growth potential.