Key Insights:
- 15 new wallets withdrew 2.52M LINK ($36.43M) from Binance in one week, signaling accumulation.
- LINK exchange reserves fall to 2-year lows, dropping below 130 million tokens in April 2025.
- Technical breakout above falling wedge points to potential price target of $20 to $24.
Fresh wallets are pulling over $36 million worth of Chainlink (LINK) from Binance. As investors look for a potential rally to $24, exchange reserves are falling and a technical breakout is building, with the $15 price level now in focus.
Surge in Wallet Accumulation
According to a new report by Lookonchain, at least 15 new wallets withdrew 2.52 million LINK tokens worth around $36.43 million from Binance. Over the past week, these wallets were funded and now hold amounts of 88,171 to 263,367 LINK each. The top wallet, alone holds 263,367 LINK.
The transfers came from Binance hot wallets, which are used for exchange operations. Typically, when users move assets from hot wallets to private addresses, it means they intend to hold. This kind of move reduces the number of tokens available on trading platforms, and if demand goes up, this could lead to a supply squeeze.
This pattern is also commonly seen before a price rally. Usually, whales, or large investors, are the ones making such moves, but the use of new wallets shows there are either institutional newcomers or retail buyers gearing up for a long-term position.
Levels of Exchange Reserves Continue to Fall
Further supporting the accumulation narrative is data from CryptoQuant. The blue line is Chainlink exchange reserves and the white line is LINK’s price in USD. From 2022 to April 2025, exchange reserves have dropped from over 200 million LINK to just under 130 million LINK. It is the lowest level in at least two years.
Fewer LINK tokens are available for trading since lower exchange reserves. Typically, investors move tokens off exchanges to store them safely or to use them in decentralized finance (DeFi). This trend takes away the immediate selling pressure and can lead to upward price movement if buying activity increases.
Price is starting to respond as available supply decreases, during the same period LINK price has climbed from below $10 to over $14.30. Digital assets are known to correlate declining reserves with rising prices, as long as demand holds or increases.
Active Address Count Shows Consistent Network Usage in Chainlink
Additionally, since 2017, the chart from Glassnode tracks the number of active addresses as well as the LINK price. Blue represents active addresses, which have been steady since early 2023, fluctuating between 5,000 and 20,000 daily users. There are occasional spikes, up to 60,000, which indicate brief periods of increased network activity.
The price of LINK has been volatile, but user engagement has not fallen off. This is an important metric because it shows the real-world use of a blockchain. Actions such as transferring LINK, using it for smart contracts, or staking are included. Activity during price corrections is steady, indicating that users are not leaving the ecosystem in its entirety.
The price surges also have a pattern with address spikes. Before price increases, there are periods with more address activity. While user numbers are steady and accumulation is underway, Chainlink’s network is still in use, a good sign for price action stability.
Technical Pattern Indicates Potential Breakout for Chainlink
Furthermore, A technical chart from ZAYKFX shows LINK breaking out of a falling wedge pattern. This pattern started forming after LINK’s December 2024 highs near $27. After that, price went lower in a narrowing range, which formed the wedge.
However, the price action has been showing a breakout as LINK has climbed above the upper boundary of the wedge.
The chart suggests that the price is heading towards $24, which would be a 71% increase from the recent low. At $15, many traders put psychological importance on the current price of $14.36. Traders will consider the breakout confirmed if LINK can break through that level and maintain it.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
