The sharp outflow of LINK from Binance, coupled with increased holdings by Chainlink Reserve, is reducing the liquidation supply on the exchange, thereby easing selling pressure and consolidating the long-term accumulation trend.
It's noteworthy that the LINK price hasn't broken out immediately after the on-chain fluctuations, suggesting the market may be deliberately consolidating rather than "chasing" the price. When the balance on the exchange decreases, corrections are often difficult to sustain because sellers lack readily available supply.
- The withdrawal of LINK from Binance and the increase in Chainlink Reserve holdings are "drying up" the supply on the exchange, reducing selling pressure.
- LINK is approaching the resistance zone of the descending channel, with key levels at $11.75 (support) and $14.65 (resistance).
- CVD taker spot remains positive, and liquidation data suggests the risk of a sharp decline is weakening.
The delisting of LINK shares from exchanges indicates a long-term holding trend.
Large withdrawals of LINK from Binance, coupled with increased holdings by Chainlink Reserve, are reducing the liquidation supply on the exchange and typically have the effect of easing selling pressure in the short term.
Data published on X shows a large Chainlink withdrawal from Binance , where a newly created wallet withdrew over 329,000 LINK, directly reducing the amount of LINK available for immediate trading.
Simultaneously, Chainlink Reserve added nearly 90,000 LINK tokens, bringing its total holdings to over 1.32 million LINK tokens. These two simultaneous supply-absorbing initiatives reduced inventory on the exchange.
The fact that prices don't react impulsively after the aforementioned withdrawals/deposits is usually a sign of deliberate accumulation, rather than speculative FOMO. When supply on the exchange decreases, technical rebounds or corrections are less likely to be suppressed by immediate sell-offs.
Mechanistically, low floor balances can weaken selling pressure during pullbacks because sellers have less stock available to Dump. In this context, extended downward phases often struggle to gain momentum, causing prices to tend to stabilize and "compress" before determining a direction.
Chainlink tests the ceiling of the descending channel after a bounce from the demand zone.
LINK has bounced up from the demand zone and is approaching the resistance of the descending channel around $13.20–$13.50, but needs to close/hold firmly above this area to confirm a trend reversal.
Previously, LINK traded within a demand zone where buying pressure repeatedly appeared to protect the price structure. This demand zone halted a broader decline and brought the price into a stable state.
From the demand zone, LINK rebounded to the resistance area of the descending channel around $13.20–$13.50. However, the structure still shows pressure from the upper levels as the price approaches the resistance zone.
Key technical milestones include $14.65 as the first resistance level, followed by $16.66, which previously Vai as a “distribution” point. Above that, $20 is described as a “reclaiming” level in the macroeconomic framework.
Conversely, if the price fails to hold above $12, the risk of a return to the demand zone may increase. Therefore, "accepting" the price above the channel resistance (instead of just creating a candlestick wick) often carries greater significance for a trend reversal when demand remains strong.
Buying pressure remains below the upper resistance level.
The 90-day CVD taker spot indicator remains positive, suggesting that active buying pressure is still absorbing sell orders, even as the price moves sideways below resistance.
The CVD (Cut, Draw, and Drive) taker spot over the 90 days is recorded in positive territory, reflecting the continued dominance of buyers as prices remain in a sideways trend.
At the time mentioned in the original text, the indicator still showed a buy-take advantage, meaning market buyers were likely continuously absorbing existing sell orders. The key point is that this behavior is typically consistent with accumulation, not distribution.
The fact that prices haven't surged while CVD is positive could be a sign of patience: buying pressure is gradually absorbing the price rather than pushing it up with quick pulls. At the same time, the lack of sharp CVD reversals suggests that buying confidence is being maintained without relying too heavily on leverage.
If absorption continues below the resistance zone, the probability of a clear breakout in the desired direction usually increases, especially as the price range becomes increasingly compressed.
Liquidating Short positions beyond Longing positions indicates that downward pressure is weakening.
Liquidation data shows that Short are being "swept" more than Longing, suggesting that the downward momentum is lacking and the risk of a deeper drop due to a domino effect may be lower in the short term.
On December 26th, total Short position liquidation reached approximately $59,460, while Longing liquidation was only $10,550. This difference indicates that sellers accounted for the majority of forced exits.
Binance alone recorded $26,940 in Short liquidations compared to $9,890 in Longing liquidations. Bybit had $24,760 in Short liquidations, while Longing liquidations remained low across exchanges.
This picture shows that Longing positions are largely "holding firm," reflecting a more confident rather than panicked sentiment. At the same time, liquidation peaks are depicted as relatively modest, suggesting that the leverage environment is under control and reducing the risk of a sharp downward spread.
LINK is currently trading between $11.75 and $14.65.
LINK is currently trading within the key range of $11.75 (support) to $14.65 (resistance), with reduced supply on the exchange helping to limit downside risk.
Based on the signals, LINK appears to be consolidating below resistance, while outflows from the exchange and increased holdings from Reserves are contributing to reduced selling pressure. The sideways movement below resistance reflects a supply-demand balance rather than clear weakness.
CVD data shows continued buyer participation, while liquidation data suggests the risk of a sharp decline is somewhat contained. As long as LINK holds above $11.75, the downside scenario may remain manageable.
If the price clearly breaks above $14.65, the next target is $16.66. Given the tight supply on the exchange, supply conditions may favor further upward support rather than a deep correction.
Frequently Asked Questions
Why might withdrawing LINK from Binance reduce selling pressure?
When LINK is delisted from exchanges, the supply of tokens "available for immediate sale" typically decreases. This can weaken selling pressure during corrections, as sellers must transfer Token to exchanges before Dump, rather than selling immediately.
What does it mean when Chainlink Reserve's holdings increase?
Reserve's addition of LINK, bringing its total holdings to over 1.32 million LINK, indicates that a portion of the supply is being withdrawn from the liquidation market. Combined with the withdrawals from the exchange, this could make the supply on the exchange even scarcer.
Is it contradictory that the CVD taker spot is positive but the price is moving sideways?
Not necessarily. A positive CVD might indicate active buying pressure absorbing sell orders, but if sellers continue to supply consistently at the resistance level, the price could consolidate and "compress" before breaking out.
Which milestone is most important for LINK in this context?
The $11.75 level is considered the main support to "keep downside risk under control," while $14.65 is the most important resistance to overcome. If $14.65 is broken through, the $16.66 level is mentioned as the next target.
