Shiba Inu, Ethereum, Chainlink Flash This 'Long-Term Bullish Signal' Despite Recent Drop

While the cryptocurrency market edged lower Thursday, several of the most popular coins showed a strong bullish indication.

What Happened: Ethereum, Shiba Inu, and Chainlink endured significant losses during the day, as indicated below. 

CryptocurrencyGains +/-Price (Recorded at 10:30 p.m. EDT)
Shiba Inu SHIB/USD-2.63%$0.00002127
Ethereum ETH/USD-1.42%$3,489.64
Chainlink LINK/USD-2.61%$15.31

However, holders of these coins have something to cheer about, according to the latest readings from on-chain analytics firm Santiment.

The supply held by top exchange wallets on the three networks has shrunk sharply in the last two weeks. Since May 27, SHIB's supply has dropped 2.4%, LINK's supply by 2.9%, and Ethereum registered the biggest decline among the three at 8.6%.

Typically, reduced exchange supplies point towards a long-term bullish signal, simply because traders' immediate focus is not on selling but accumulating. 

Why It Matters: The above observation was validated by the spike in holdings of long-term investors of these coins.

Ethereum's HODLer balance increased by 1.4% in the last 24 hours, according to IntoTheBlock. Similarly, the holdings of Chainlink's long-term investors rose 0.84%. SHIB's HODLer balance remained unchanged over the past 24 hours.

Note that HODLers here refer to addresses that have held the cryptocurrencies for at least one year. An increase signals accumulation and confidence in the upside potential.

Image via Shutterstock

Read Next: This Bitcoin-Offshoot Defies Broader Market Behavior, Logs Gains While Blue-Chip Coins Slip

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsMarketsChainlinkEthereumShiba Inu
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!