640,000 LINK Withdrawn in 24 Hours! Is Chainlink Primed for a Breakout?

The cryptocurrency market remains volatile, and Chainlink (LINK) is not exempted. The asset has been trading within a tight range, struggling to reclaim key resistance levels. However, on-chain data shows potential signs of a bullish trend.

Recent data from Santiment indicates that 640,000 LINK tokens were withdrawn from exchanges in the past 24 hours. Historically, such large withdrawals suggest long-term accumulation, as investors move their holdings to private wallets instead of leaving them available for immediate selling. This shift in investor behavior could mark the beginning of a recovery rally for Chainlink (LINK).

Massive LINK Withdrawals from Exchanges and Market Impact

On-chain data from Santiment and CryptoQuant reveals that 640,000 LINK tokens have been pulled from major exchanges over the past day, with significant withdrawals from Binance, Coinbase, Kraken, and OKX. The breakdown of these withdrawals is as follows:

• Binance: 250,000 LINK withdrawn
• Coinbase: 160,000 LINK withdrawn
• Kraken: 130,000 LINK withdrawn
• OKX: 100,000 LINK withdrawn

Large withdrawals from exchanges often indicate that investors are moving their holdings into private wallets for long-term storage rather than leaving them available for immediate selling. This trend is typically seen as bullish, as it reduces the circulating supply on exchanges, potentially leading to price appreciation due to lower sell pressure. The accumulation of Chainlink (LINK) tokens comes at a time when the market remains uncertain, but historical data suggests that similar large-scale exchange outflows have preceded major price increases.

Market impact has already started to take shape, with LINK stabilizing above the $13 level following the exchange outflows. If this trend continues, investors could see LINK make an attempt at breaking its $15 resistance, setting the stage for further upside.

Market Struggles Amid Volatility

LINK’s price has seen substantial swings recently, ranging from $17 down to $11.8 before stabilizing around $14. Bulls are currently attempting to push the asset back above the $15 resistance level, but momentum remains weak. The market appears to be consolidating, with investors awaiting a decisive breakout.

Despite these fluctuations, the recent surge in exchange outflows suggests that investors are positioning for potential Chainlink (LINK) gains. Historically, major withdrawals have preceded price recoveries, as reduced exchange supply limits immediate selling pressure.

Exchange Outflows and Accumulation Patterns

Crypto analyst Ali Martinez shared insights on X (formerly Twitter), highlighting the 640,000 Chainlink (LINK) outflow. Whales and long-term holders often move tokens off exchanges when anticipating a price surge. This behavior reduces selling pressure and contributes to a more stable market structure.

On-chain data further reveals a notable drop in LINK’s exchange reserves, reinforcing the accumulation thesis. If this trend continues, it could signal the early stages of a supply squeeze, which might fuel upward momentum in the coming weeks.

Expert Analysis: What Analysts Are Saying About LINK’s Future

Industry experts are weighing in on the implications of the large Chainlink withdrawals. Ali Martinez, a well-known crypto analyst, noted that historical data supports the bullish case for Chainlink (LINK), as past exchange outflows have led to significant price rallies.

Another market strategist, Michaël van de Poppe, mentioned that while LINK is facing resistance at $15, a confirmed breakout above this level could lead to a strong rally toward $17 and beyond. However, he also warned that if Chainlink (LINK) fails to hold its $13.5 support, it may experience another leg downward toward $10.

Meanwhile, Santiment’s on-chain report suggests that decreasing exchange reserves could set the stage for a potential supply crunch, which might lead to higher volatility and price appreciation.

Key Resistance and Support Levels to Watch

At present, Chainlink (LINK) is trading around $14, facing strong resistance at $15. For a bullish trend reversal, buyers must:

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• Defend the $13.5 support zone to prevent further downside.
• Push LINK above $15 resistance to confirm renewed momentum.
• Target $17 as the next major level, where the 200-day Moving Average (MA) and Exponential Moving Average (EMA) could act as barriers.

Failure to reclaim these levels could expose LINK to further downside risks, with potential retracement toward the $10 range if selling pressure intensifies.

Can LINK Sustain Its Uptrend?

With uncertainty still looming over the market, investors remain cautious. The ongoing exchange outflows are encouraging but must be accompanied by increased buying volume and sustained demand to drive a breakout. The coming days will be crucial in determining whether Chainlink (LINK) can capitalize on its recent accumulation phase or if further consolidation is needed before the next major move. Traders should closely monitor price action around $15 and $17, as breaking these levels could set the stage for a prolonged recovery rally.

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FAQs

1. Why is the withdrawal of 640,000 LINK significant?

Large exchange withdrawals typically indicate long-term accumulation, reducing immediate selling pressure and hinting at a potential price increase.

2. What are the key resistance levels for LINK?

The major resistance levels are $15 and $17, where LINK must break through to confirm a bullish trend reversal.

3. What happens if LINK fails to reclaim $15?

Failure to break above $15 could lead to further consolidation or a drop toward $10, depending on market conditions.

4. How does exchange outflow impact LINK’s price?

Reduced exchange reserves limit immediate selling, often leading to supply constraints that can drive prices higher.

Glossary

Exchange Outflows: The movement of crypto assets from centralized exchanges to private wallets, often signaling long-term accumulation.

Moving Average (MA): A technical indicator that smooths price data to identify trends over a specific period.

Exponential Moving Average (EMA): A variation of the MA that gives more weight to recent price action.

Support and Resistance Levels: Price zones where buying or selling pressure is historically strong, affecting price movement.

Whales: Large crypto holders whose trades can significantly impact market prices.

References

1. Binance
2. Newsbtc
3. Pintu.co
4. eBlock media
5. Tradingview
6. Twitter
7. Holder.io