- The long-term downtrend of Chainlink was unbroken.
- The falling exchange reserve and outflows from exchanges pointed toward an accumulation trend.
Chainlink [LINK] saw a 3.9% price drop over the past 24 hours, after climbing 21.6% from the 9th of April to Monday, the 21st of April.
This seemed to hint that the recent dip might be short-term, but the token has been in a steady downtrend for much of 2025.
Source: CryptoQuant
The exchange reserve metric showed that Chainlink was increasingly flowing out of exchanges since July 2024. This was a bullish sign, as it indicated accumulation.
Holders moving their tokens out of centralized exchanges usually pointed toward movement to cold storage. Inflows of LINK to exchanges would reflect increased selling pressure.
After a sharp spike on the 14th of March, the reserves were falling once again, reaching the lowest levels since June 2022. Should investors take this as a sign to buy more Chainlink?
What supports Chainlink bulls?
Source: IntoTheBlock
Data from IntoTheBlock showed that the 7-day new addresses change was +40.97%, and the active addresses have grown by 18.46%. During this time, the price growth was 6.88%. Together, it reflected a bullish picture.
Increased network activity signaled more adoption and demand for LINK, leading to a price growth.
Yet, zooming out, we can see that the network activity was far below the levels it reached during the November and December highs.
Hence, investors must not be too buoyed by sudden upticks in activity, but need to await sustained adoption to indicate increased utility.
Source: CryptoQuant
In a recent report, it was highlighted that 46.1% of the Chainlink supply was controlled by whales. Over the past ten months, the exchange netflow metric saw sudden, sharp LINK inflows to exchanges.
The most recent one came on the 14th of March, when 14.57 million Chainlink tokens were sent to exchanges. The purpose could be to sell or to use as collateral in trading coin-margined futures.
Since this inflow, the netflow metric reflected LINK movement out of exchanges. However, other days saw enormous inflows, while the outflows were rarely as large.
This could be a sign of whales selling their holdings, eroding some long-term bullishness.
Source: LINK/USDT on TradingView
Over the coming days, Chainlink needs to surpass the $14-$14.5 resistance zone before its chances of a rally appear good. The $15.55 is the key resistance on the 1-day timeframe.
A breakout beyond this level would represent a bullish structure break and could offer a buying opportunity for swing traders.
