Chainlink Price Prediction: Link exchange reserves fall to multi-year low, may hit $30

The Chainlink token LINK has been stagnating around $17 since its big dump on October 10, failing to rebound like other mainstream crypto assets. However, CryptoQuant data shows that the Chainlink exchange reserves are rapidly falling to new lows in years. This phenomenon of large-scale withdrawals from exchanges is typically seen as a strong bullish signal, indicating that whales or institutions are transferring LINK to cold wallets for long-term holding, which may suggest that the LINK price is about to experience a turning point.

Exchange supply plummets: Chainlink sees massive withdrawals

Although the LINK price performance has been flat, its on-chain data suggests a strong accumulation force. The Chainlink exchange reserves suddenly dropped significantly without warning, and there are several key reasons behind this phenomenon.

• Long-term Holding Signal: The most likely reason is that a large amount of LINK has been withdrawn from mainstream CEX and transferred to personal Cold Wallets or staking contracts.
• Whales Silent Accumulation: Given that the price of LINK remains stagnant while other Crypto Assets are experiencing a Rebound, this phenomenon may indicate that Whales or institutional investors are quietly accumulating LINK off the market to avoid impacting market prices.
• Negative Net Flow Trend: CryptoQuant's net flow data confirms this pattern. Since the big dump on October 10th, most days have shown negative net flow, indicating that the outflow of LINK from the exchange exceeds the inflow. This typically signals an increase in long-term holding tendencies and a reduction in future selling pressure.

Technical Analysis: LINK Holds Key Support, Bullish Momentum Building

With the arrival of November and the increase in accumulation activities, LINK has once again attracted the market's attention. Technically speaking, despite experiencing a pullback in October, LINK still remains above its key moving averages.

• Key Demand Zone: The current green area has proven to be a strong demand zone, and it is crucial for buyers to continuously intervene and maintain this area.
• Short-term Resistance and Upward Potential: If LINK can rebound from the current support level, the price may push towards 19 dollars and is expected to test the short-term resistance area of 20 dollars.
• RSI Space is Ample: Relative Strength Index (RSI) hovers around 43, indicating that there is still ample space to accumulate bullish momentum.
• Long-term outlook: As long as LINK remains above the support area, the bullish tendency will be maintained. If it can cleanly break through $25, it is very likely to trigger a major rally towards $30 before the end of the year.

Conclusion

Chainlink reserves on exchanges have hit a multi-year low, which is an extremely important signal in the LINK price trend. It strongly indicates that a long-term accumulation activity is ongoing in the market, suggesting that although short-term price fluctuations are minimal, the selling pressure in the future may weaken, and the potential for a price explosion is building up. For traders focusing on the DeFi oracle track and LINK investments, this could be a key moment to position for long-term holdings, with a focus on whether it can break through key resistance levels to confirm the completion of the buildup.