Chainlink (LINK) is currently exhibiting strong signals of a supply squeeze and strategic accumulation, suggesting a potential shift towards an upward price trajectory. Recent on-chain data and market indicators point to a deliberate reduction in available supply coupled with persistent buyer interest, setting the stage for a significant directional move.
Supply Drains and Long-Term Holding
Large Chainlink withdrawals from major exchanges like Binance highlight a clear trend towards long-term holding, with significant volumes being moved off-exchange. Notably, a newly created wallet removed over 329,000 LINK, while the Chainlink Reserve added nearly 90,000 LINK, collectively draining liquid supply from two directions. This deliberate reduction in exchange-side availability, without an impulsive price surge, signals patient accumulation rather than speculative chasing. Such actions effectively dampen potential selling pressure during market pullbacks as supply tightens, making it harder for downside movements to gain momentum.
Persistent Demand and Technical Consolidation
Despite sideways price action, Chainlink has seen sustained buy-side aggression, evidenced by a consistently positive Spot Taker CVD over the past 90 days. This indicates that market buyers are actively absorbing sell orders, confirming a phase of accumulation with conviction, rather than distribution or hesitant trading. Technically, LINK has rebounded from a critical demand zone and is now challenging descending channel resistance around $13.20-$13.50, consolidating beneath key overhead hurdles like $14.65. This persistent absorption under resistance, combined with fading downside stress reflected in liquidation data (shorts significantly outweighing longs), suggests a balanced market with controlled leverage and limited risk of cascading drops, hinting at an impending directional breakout if resistance is overcome.
