Is Chainlink (LINK) Entering a Supply Crunch? 15 Million Tokens Disappear From Exchanges in the Last Month

Chainlink (LINK) has experienced a decline of nearly 30% in value over the past month, including an 8% drop in the last day. Nevertheless, current trends suggest it could be entering a robust accumulation phase.

Indications of Strong Accumulation

In the last month, CryptoQuant reported that over 15 million LINK tokens have been withdrawn from centralized exchanges. When looking at the data from the beginning of the year, it’s evident that exchange balances fell from over 180 million LINK to around 146 million today. This translates to approximately 34 million tokens stored away in private custody or staking, reducing the percentage of LINK’s supply on exchanges from roughly 18% to 15%.

Generally, lower exchange reserve levels indicate diminished selling pressure. Moreover, when tokens are taken off exchanges, it often implies that the holders are not planning to sell them immediately. The current inflow trends starkly contrast previous patterns where significant inflows into exchanges typically coincided with local price peaks.

At this moment, LINK is seeing notable outflows, signaling a potential supply-oriented environment if demand remains steady. The token’s role in cross-chain data movements and staking opportunities is growing, presenting a promising setup for medium-term scenarios despite short-term fluctuations.

Is There an Investment Opportunity?

After a turbulent October, LINK is trading close to $16.1. Crypto analyst Ali Martinez noted that if the asset dips to $15 soon, it could represent a “golden buy zone” before a larger upward movement. Historically, this level has acted as strong support for accumulation among significant investors. Martinez suggests that another dip here might lay the groundwork for a surge toward his projected $100 target.

Even Joao Wedson, the founder of Alphractal, suggested that current selling trends in LINK could be seen as constructive, indicating that it might be the last reset before a significant upside movement. He explained that the negative Buy/Sell Pressure Delta often signifies strong holders absorbing excess supply. Historically, when the asset dips below major moving averages, it proves to be a solid buying opportunity rather than an indicator of weakness. He believes a strong upward push before year-end is still very much a possibility.