Chainlink is trading under sustained pressure as its price continues to struggle below the $13 level, failing to regain the bullish momentum that characterized the early stages of the market cycle. Repeated attempts to regain ground have been rebuffed, sparking caution among traders. A growing number of analysts are warning that LINK could face further downside before a meaningful recovery materializes, as overall market conditions remain fragile.
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Despite weak price trends, on-chain data tells a more nuanced story. Analysts at CryptoQuant, known as CryptoOnchain, report that recent market data reveals a convincing convergence between on-chain metrics and technical structure, pointing to increased accumulation activity at current levels. Although prices remain compressed, the underlying movements suggest that large market participants may be quietly taking positions rather than exiting.
This disconnect between falling prices and improving on-chain signals is often observed during market transitions when selling pressure begins to subside but confidence has not yet returned. According to CryptoOnchain, even though LINK is struggling to attract speculative demand, indicators that track currency flows and holder behavior are showing signs of significant buying interest emerging behind the scenes.
Currency outflows and long-term support indicate accumulation
This analysis highlights notable changes in Chainlink’s on-chain and technical dynamics, including the exchange’s net flows. According to the Binance Altcoins Token Netflow 7-day chart, Chainlink has withdrawn large amounts of funds from Binance over the past week, with total outflows approaching $50 million.
This size stands out when compared to other large altcoins such as Uniswap (UNI) and The Sandbox (SAND), which have not seen similar capital movements over the same period.
In on-chain analysis, large and sustained currency outflows are commonly interpreted as a reduction in immediate selling pressure. Rather than preparing to sell, holders appear to be moving LINK into self-custody or long-term storage, suggesting a shift toward holding behavior. This type of activity is often associated with accumulation phases, especially if it occurs during periods of weak price movements.
At the same time, the technical structure strengthens on-chain signals. The daily chart of LINK/USDT shows that the price is riding directly on the long-term bullish trendline that has served as dynamic support since 2020. Historically, this level has consistently attracted demand and limited deeper drawdowns during correction phases.
The convergence of large currency outflows and the retesting of key historical supports sends a strong signal of prudent money accumulation. This suggests that large investors view current levels as a strategic entry zone. It is still important to defend this support as it maintains Chainlink’s long-term bullish structure and increases the likelihood of a future trend reversal.
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Structural demands of LINK testing
Chainlink (LINK) continues to trade under pressure, with the price hovering around the $12.50 level on the 3-day chart after an extended correction. This structure shows a clear loss of bullish momentum after repeated rejections from the $20-$25 region early in the cycle. Since that peak, LINK has established a series of lower lows, confirming that the medium-term downtrend is maintained.
From a technical perspective, LINK is currently trading below its short-term and intermediate-term moving averages, which have rolled over and are now acting as dynamic resistance. The 50-period moving average is currently well above the price, supporting the idea that the recent rally is corrective rather than impulsive.
However, the long-term moving average is flat near current levels, suggesting that selling pressure may be waning as prices approach historically important zones.
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The $12-$13 range stands out as an important support area. This level has acted as a pivot many times over the past two years, repeatedly attracting demand during periods of widespread market weakness. The fact that LINK is actively consolidating rather than collapsing suggests that sellers are losing momentum.
Volume behavior supports this view. The sell-off earlier this year was accompanied by a sharp spike in trading volume, but recent price movements have shown fewer participants, suggesting circulation may be stabilizing. For LINK to show a meaningful trend reversal, the bulls need to reclaim the $15-$16 zone.
Featured image from ChatGPT, chart from TradingView.com
