Chainlink (LINK) has experienced a significant price decline, losing almost 30% over the past month, including an additional 8% drop in the last 24 hours alone.
Despite this recent downturn, current data suggests that the token may be entering a phase of strong accumulation.
Strong Accumulation Signal
Data from CryptoQuant reveals that over the past 30 days, more than 15 million LINK tokens have been withdrawn from centralized exchanges. When considering the entire year, this pattern becomes even more significant. Exchange balances have decreased from over 180 million LINK to approximately 146 million LINK.
This represents a withdrawal of about 34 million tokens into private custody, staking, or other non-exchange addresses. Consequently, the proportion of LINK’s supply held on exchanges has fallen from around 18% to 15% this year, a substantial shift within a relatively short period.
A reduction in exchange balances typically correlates with decreased available sell-side liquidity. When holders move tokens off exchanges, it generally indicates an intention to hold rather than sell immediately. Conversely, sharp inflows back into exchanges have often coincided with local price peaks, as traders return tokens for selling or profit-taking. The current trend is indicative of the opposite scenario.
LINK is currently experiencing pronounced outflows, which, while not guaranteeing a rally, signals a potential supply-squeeze environment if demand remains consistent. Given LINK's expanding role in cross-chain data flows and the continued growth of its staking ecosystem, this setup points to a constructive mid-term outlook, even with the possibility of short-term volatility.
Opportunity?
Following a volatile October, LINK is trading near $16.1. Crypto analyst Ali Martinez has suggested that a short-term pullback to $15 could represent a “golden buy zone” preceding a more substantial upward movement. Historically, this price level has served as strong support, attracting accumulation from large investors. If LINK experiences another dip to this area, Martinez anticipates it could pave the way for a breakout towards his projected $100 target.
Joao Wedson, founder of Alphractal, has also commented on the current selling pressure in LINK, arguing that it could be a constructive development. He recently posited that this period might represent the final local reset before a larger upward trend. Wedson explained that a negative Buy/Sell Pressure Delta typically signifies strong hands absorbing available supply. Historically, the asset’s declines below major moving averages have presented solid entry points rather than indicating underlying weakness. He further noted that a sharp upward move before the end of the year remains a strong possibility.