Chainlink face short term rally as small investors increase holding

 Chainlink bullish rally:

Chainlink will going to face short term rally, as large holders shifted their investment by selling their tokens while smaller investors accumulate more Chainlink.

Data from the crypto intelligence tracker Santiment reveals that Chainlink (LINK) holders have experienced significant losses since the beginning of July, amounting to over $80 million. When traders see large losses like this, it often indicates capitulation, where they sell off their holdings in panic. This situation, interestingly, can lead to a potential increase in the price of LINK.

The supply distribution data highlights that large holders, or whales, with between 1 million and 100 million LINK tokens, have been selling their tokens since the start of July. On the other hand, smaller investors with less than 1 million tokens are taking this opportunity to accumulate more LINK. This shift in holdings suggests differing strategies between large and small investors.

According to IntoTheBlock data, the netflows of LINK on exchanges have been negative over the past two weeks, with approximately $110 million worth of LINK being withdrawn from exchanges. When a cryptocurrency is withdrawn from exchanges, it typically indicates that investors are moving their holdings to private wallets for long-term holding, a phase known as accumulation.

Currently, LINK is trading at $13.119, reflecting a nearly 1% gain in the past day. The combination of large losses by holders, changes in supply distribution, and the accumulation phase suggests that LINK could be gearing up for a price increase in the near future.