Is a $20 Chainlink Price Rally Imminent After 18M LINK Tokens Leave Exchanges?

Key Insights:

• Chainlink price forms a rounding bottom; breakout above $13.07 could trigger a 20% rally.
• Over 18M LINK worth $230M exited exchanges in 5 days, signaling possible accumulation.
• Futures open interest rose to $566.98M, while shorts faced $122K in liquidations in 12h.

Over the past five days, over 18 million Chainlink tokens have been moved out of centralized exchanges. This trend has triggered speculation that the Chainlink price may be preparing for a new rally. With a bullish chart pattern forming and growing interest in futures contracts, market watchers are now focused on whether LINK could revisit the $20 level in the near future.

Chainlink Price Flashes Buy Signal Amid Exchange Outflows

A large number of Chainlink (LINK) tokens worth over $230 million have been withdrawn from exchanges. On-chain data from IntoTheBlock shows a sharp drop in netflows, with LINK exchange balances declining by more than 18 million tokens from June 20 to June 25.

This decline is usually associated with accumulation, where traders shift assets to private wallets, reducing short-term selling pressure. As of June 26, the Chainlink price is trading at $13.43, showing a mild recovery of 2.18% in the past 24 hours.

Additional data also shows an increase in large holder activity. Netflows from whale addresses turned positive recently, jumping from -1.49 million LINK to 1.12 million LINK in just three days. This shift suggests that large investors could be positioning themselves for a future price movement.

If this trend continues and demand stays consistent, the limited supply on exchanges may support a price rebound. Historically, such behavior often leads to bullish movements, especially when backed by favorable technical indicators.

Chainlink Futures Data Reflects Growing Bullish Interest

Derivatives market activity shows a growing number of traders are taking long positions on Chainlink. Open Interest in LINK futures has increased by 1.20% over the last 24 hours to reach $566.98 million, while trading volume dropped by nearly 26%. This trend often reflects a shift to longer-term positioning.

Short positions have been liquidated in increasing numbers over the last few hours. In the past 12 hours, shorts accounted for nearly $123,000 of all liquidations. A short squeeze, caused by sudden price increases, could further support upward momentum if it continues.

The global long/short ratio stands at 0.941, indicating more short positions across the market. However, on platforms like Binance and OKX, long positions are more dominant. The Binance long/short ratio by accounts is above 3.1, suggesting that many top traders are expecting a positive move in the Chainlink price.

These data points together reflect increasing bullish conviction, especially as institutional and high-volume traders appear to be adjusting their strategies in favor of a LINK price breakout.

Chainlink Price Technical Setup Suggests Potential for Breakout

Chainlink is currently forming a bullish chart structure known as a rounding bottom. This pattern has historically signaled the end of downtrends and a potential shift to the upside. LINK is testing resistance near the $13.07 neckline. A close above this level could trigger a 20% rally.

There is a bullish sentiment on technical indicators as well. On the daily chart, there is an indication of a cross over of the MACD line above the signal line. This is the initial positive momentum indicator in weeks and could be a sign that, pressure is subsiding on the downside.

Relative strength index (RSI) stands at 49.07 and is moving up. The value implies that LINK is not in oversold conditions anymore. RSI rising above 50 would be a confirmation on the momentum shift and this would assist the Chainlink price to stay in the upward direction.

However, If  Chainlink price manages to continue trading higher than the $14.70 resistance level that acted as resistance during May and early June, it will reveal potential future gains to a possible $16 and even higher. Further accumulation, along with technical and market derivatives ringbells give direction to the plausibility of break out.

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.