LINK is absorbed by major investors – What signals indicate stability before a turning point?

Recent phases of Chainlink present an interesting picture: while short liquidation pressure dominates ( with total short liquidations around $59,460 on 12/26 compared to only $10,550 in long liquidations), the market shows the patience of holders. Major exchanges like Binance recorded $26,940 in short liquidations, clearly surpassing the $9,890 in long liquidations. Bybit also registered $24,760 in short liquidations, while longs remain at minimal levels. This indicates that sellers are under pressure to close positions, while long-term investors remain steadfast.

Absorption of LINK from large wallets – Signal of accumulation strategy

Strong movements from large wallets reveal a clear strategy. A newly created wallet withdrew over 329,000 LINK from exchanges, immediately reducing available supply. At the same time, Chainlink Reserve added nearly 90,000 LINK, increasing total reserves to over 1.32 million LINK. These two actions work in tandem – reducing liquidity from trading markets on both supply and accumulation sides.

Notably, the current LINK price at $12.41 (down 2.81% in 24 hours) has not reacted strongly despite the significant reduction in supply. This is not a sign of weakness but evidence of deliberate accumulation. As LINK on exchanges decreases, selling pressure also weakens. Sharp price drops become more difficult because sellers lose the advantage of driving prices down. Over time, this continuous absorption often exerts upward pressure on the price, especially when demand remains steady at support levels.

Continuous positive CVD – Buyers remain patient in accumulation

The spot taker CVD indicator over the past 90 days shows a monochrome picture: buying pressure continuously outweighs. Even when prices fluctuate sideways, market buyers continue absorbing sell orders. This behavior is meaningful – it emphasizes an accumulation trend rather than distribution of assets.

It’s noteworthy that no strong CVD reversals have appeared, indicating buyers maintain confidence without relying excessively on leverage. As a result, selling pressure struggles to expand. Instead, prices seem to be compressed within narrower ranges. As consistent buying absorption continues below resistance levels, the likelihood of a targeted breakout increases over time.

LINK price structure: from demand zone to resistance challenge

Chainlink is currently trading in a critical zone. Previously, LINK experienced a strong demand zone – where buyers repeatedly intervened to protect the structure. This zone halted broader declines and forced the price to stabilize.

Since then, LINK has rebounded toward the downward channel resistance, around $13.20–$13.50. However, the price structure still shows respect for higher resistance levels. For LINK, the $14.65 resistance remains the first barrier to overcome, followed by $16.66 – a level that previously served as an important distribution axis. Above that, $20 representing the macro re-claim zone. Conversely, if it cannot hold above $11.75, the downside risk reopens. Accepting prices above the channel resistance will be much more important than fleeting breakouts.

Conclusion: Effective accumulation, restrained downside risk

The current picture for Chainlink emphasizes patience rather than haste. With significantly reduced supply on exchanges, steady buying demand, and dominant short liquidation pressure over longs, conditions lean toward stability. As long as LINK remains above $11.75, downside risk will remain restrained. A clear breakout above $14.65 could allow the price to move toward $16.66, provided supply supports further upward potential rather than deep correction.