Chainalink (LINK) Supply Shock Begins? 15 million tokens disappear from exchanges in 30 days

The drop in foreign exchange reserves from 180 million LINK to 146 million LINK indicates a collapse of structural selling pressure.

Chainlink (LINK) has lost almost 30% over the last month, including a further 8% drop in the last 24 hours alone.

However, the latest data suggests that the token could be quietly entering one of its strongest accumulation phases in recent memory.

Strong accumulation signal

In the last 30 days, CryptoQuant found that over 15 million LINK have left centralized exchanges, and as we approach the start of the year, the pattern becomes much more significant. Interestingly, exchange balances have fallen from over 180 million LINK to approximately 146 million today.

That’s around 34 million tokens put into private escrow, staking, or other non-exchange addresses. In practical terms, the proportion of LINK supply held on exchanges has fallen from about 18% to 15% this year. This is a surprisingly large change in a relatively short time.

Lower foreign exchange balances typically translate into less liquidity available on the sell side. When holders take tokens off exchanges, it usually means they don’t plan to sell them right away. Strong inflows back into exchanges have often aligned with local price highs, because traders move coins back to sell or make profits. The current trend is the opposite.

LINK is experiencing heavy capital outflows. It does not guarantee a rebound, but it does indicate an environment of tight supply if demand remains stable. And as LINK’s growing role in cross-chain data flows and staking continues to expand, this setup looks like a constructive medium-term structure, even if near-term volatility persists.

Chance?

After a choppy October, LINK is currently trading near $16.1, but crypto analyst Ali Martinez fixed that if the crypto asset returns to $15 any time soon, that drop could end up being a “golden buy zone” before a much larger move higher. This area has historically acted as a strong support where great players accumulate. So if LINK falls back there, Martinez believes it could set the stage for a subsequent breakout that propels it toward the $100 target he hopes for.

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Even Alphractal founder Joao Wedson had said that the current sales on LINK could be constructive. He recently argued that this could be the last local reset before a larger bullish move. Wedson explained that delta buying/selling pressure that is in negative territory generally reflects strong hands absorbing supply. Historically, the asset falling below the major moving averages has been a solid entry zone rather than indicating weakness. He added that a strong bullish move towards the end of the year is still firmly on the table.