Key Insights:
- Over 376M LINK accumulated between $4.33 and $7.05 signals a strong support zone.
- LINK has broken out of a falling wedge, with resistance seen near $15.22.
- Exchange balances drop post-distribution, reducing selling pressure.
The heavy accumulation has kept Chainlink (LINK) at a strong support level around $6.30. Meanwhile, LINK is currently trading around $13.24 and is close to a major resistance zone at $15.22, and traders are watching closely, while institutional updates are providing momentum.
$6.30 Accumulation Zone Marks a Strong Foundation
IntoTheBlock’s Global In/Out of the Money model has recently given some clear support between $4.33 and $7.05. Over 92,700 addresses bought around 376.72 million LINK in this range. This band is a key psychological and technical support level, as the average buying price within this band is $6.28.
At $13.24, LINK is in the money on over half of the total supply—509.12 million LINK. About 50.91% of all LINK holdings are accounted for by this. Another 5.95% or 59.48 million LINK, are at breakeven.
Nevertheless, 43.14% or 431.43 million LINK are still below their entry price. The next area of interest is between $14.32 and $16.43, where 181.42 million LINK were acquired by 75,170 addresses. Unless demand increases, this range is expected to act as strong resistance.
Technical Setup Points to a Breakout Attempt
Moreover, CryptoRand shares a technical analysis chart which shows that LINK has broken out of a falling wedge pattern. Since early 2025, this had been a pattern and often was a reversal. The current trend is also strengthened since LINK has also managed to break past horizontal resistance at $13.
Several bullish candle closes support the breakout, implying that the buying pressure is increasing. $15.22, which is also on-chain resistance and previous technical levels, is the next major resistance to watch. If the price closes above this zone, it could be a signal for a further move towards $20 and beyond.
Supply on Exchanges Falls as Tokens Move to Long-Term Storage
According to Coinglass, that’s not the case, as LINK balances on exchanges have dropped considerably. Since the token distribution in March, most of the newly distributed supply has been absorbed, and balances have steadily decreased. This decline suggests that fewer tokens are available for sale, and that could help limit downside risk in the near term.
The price recovered from under $12 to over $13 at the same time as this supply drop. In addition, historical data indicate that falling exchange balances have preceded price increases.
Institutional Developments Could Act as a New Catalyst
Recently, Chainlink has been involved with major institutions such as DTCC and SWIFT. A testing schedule posted on social media showed the DTCC will run its first pilot in three days before SWIFT runs its about 10 days later. Full rollout is expected in November 22, while production for select banks is expected by July 19.
While these dates come from an external post and not from Chainlink’s official channels, they align with previous developments in regards to Chainlink’s Cross-Chain Interoperability Protocol (CCIP). The objective of this protocol is to connect traditional financial systems with blockchain networks. It may also increase institutional demand for LINK as a utility token if successful.
User Activity and Volume Trends Show Stable Base
Meanwhile, according to data from Token Terminal, LINK has a transfer volume of $1.7 billion in the past 12 months. Even though the number of weekly active users has fallen to 581, the platform saw several spikes in activity. During these surges, token prices were also higher and broader market interest was high.
While user numbers have recently decreased, the continued transfer activity shows that there is a solid base. This base may help support future growth if new demand arrives through institutional use or improved market conditions.
We are at an important point for Chainlink. The support at $6.30 is still in place, and we are now watching for a break of the resistance zone at $15.22.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
