Chainlink is showing strong accumulation signals (floor reserves hit a yearly Dip , Spot ETFs are seeing inflows), but the LINK price remains weak, hovering near the $13.20 support zone.
The divergence between on-chain , institutional Capital , and price movements reflects broader market pressures. Whales, institutions, and retailers are all interested, but thin liquidation and cautious sentiment are delaying the recovery.
- LINK exchange reserves decreased by 44.98 million LINK in one year, reaching a yearly Dip (CryptoQuant).
- The Spot Link ETF recorded inflows from December 2nd ( SoSoValue ), but the price continued to weaken.
- Spot volume decreased by >48% to approximately $295.6 million; risk of breaking below $13.20 as leverage favors Short positions.
Chainlink reserves hit a yearly Dip , confirming accumulation.
Over 44.98 million LINK tokens have been delisted from exchanges in the past year, pushing exchange reserves to their lowest level of the year, which typically reflects accumulation and reduced selling pressure.
In a volatile environment, traders can monitor Derivative (OI, funding, liquidation), liquidation , and utilize the trading/copy trading tools on BingX to assess risk-reward ratios as LINK approaches support/resistance zones.
Despite clear signs of accumulation, the price of LINK still fell sharply during the same period, from nearly $29 to around $13.60. This suggests that the buying pressure withdrawn from the exchange was not enough to offset the selling pressure in the system, or that spot demand weakened.
on-chain accumulation signals often lag behind price. When market sentiment is negative, defensive money flows and low volatility can mask the supply reduction effect on the exchange.
Spot ETF Capital inflows are not enough to push prices up.
Although the Spot LINK ETF has seen continuous inflows since December 2nd (SoSoValue), this buying pressure has not yet reversed LINK's downward trend.
The inflow of Capital indicates that new money is entering the listed product, often supplementing the buying power of the underlying asset. However, LINK's downward trend continues as the overall market weakens from around October 10th.
This suggests that the scale of ETF buying is currently not large enough to offset profit-taking pressure and macroeconomic risks. Expectations of a recovery may require more time and improved broad liquidation .
Volume is depleted, risk of breaking below the $13.20 support level.
LINK is trading around $13.65 (-2.25% 24h), with spot volume down more than 48% to around $295.6 million, reflecting hesitation and risk of breaking support.
On the daily chart, LINK has been trading sideways within the $13.19–$14.70 range since the beginning of December and is approaching the lower boundary of $13.20. This is a key short-term support zone.
If $13.20 is lost, historical patterns suggest a further downside risk of approximately 16%. Below $13.20, the support zone appears limited, meaning further downside volatility could extend given thin liquidation .
Leverage is skewed towards Short, short-term sentiment is pessimistic.
CoinGlass data shows leveraged Short positions exceeding Longing positions around $13.45–$13.99, leaning towards a short-term downtrend.
Traders are using leverage concentrated at $13.45 (lower edge) and $13.99 (upper edge) with $2.01 million in Longing positions and $3.04 million in Short positions. This imbalance supports a retest or breakout scenario with thin liquidation .
Nevertheless, declining floor reserves and inflows into ETFs remain the foundation for long-term accumulation. If liquidation recovers, clusters of Short liquidations could create a technical rebound.
Outlook: Long-term accumulation against macroeconomic pressures
on-chain accumulation signals and institutional Capital inflows provide long-term support, but price momentum remains dependent on an improvement in broader market sentiment.
The current picture is "accumulating data vs. weak liquidation ." If sentiment doesn't improve, prices could remain under pressure; conversely, the patience of accumulating capital could be rewarded as systemic risks subside.
Frequently Asked Questions
Why is the price of LINK falling despite decreasing reserves?
Decreased floor inventory reflects accumulation and reduced supply for sale, but when the overall market weakens, liquidation , and spot demand decreases, prices may still fall. on-chain signals often lag before being reflected in price.
What are the key technical milestones for LINK currently?
The 13.19–14.70 USD range serves as a short-term reference point. The 13.20 USD level is key support; a breach of this level carries a risk of a 16% decline based on historical patterns, while support below that level is quite limited.
What does the inflow of Capital into the Spot Link ETF mean?
The inflow represents new money entering the market, often creating buying pressure. However, the current scale is not enough to reverse the trend given the weak overall market environment. According to SoSoValue, the inflow has been sustained since December 2nd, but prices remain under pressure.
Which side, in terms of psychology or leverage, is currently leaning towards?
CoinGlass data shows that leveraged Short positions are dominant around $13.45–$13.99, while spot volume has decreased by over 48%. This reflects cautious sentiment and potential volatility as the market approaches liquidation zones.
