Chainlink Consolidation Signals Potential Rally

Chainlink (LINK) closed indecisively at $17.96, struggling to break resistance at $19.50.

The price remained inside the $16.00 – $19.50 range, signaling market hesitation.

A breakout above $19.50 could push LINK toward $30.00, with a long-term target of $37.00 if momentum sustained.

Intraday volatility kept LINK within a tight consolidation phase. Above $19.75, buying pressure could strengthen, leading to bullish continuation.

Failing to hold $16.00 might trigger a decline toward $12.80 and possibly $10.00.

LINK/USDT daily chart | Source: Trading View

A W-pattern breakout played out in October 2024, leading LINK from $9.50 to over $20.00 in weeks.

Exchange supply dropped to 0.147, indicating fewer tokens available for sale, a historically bullish sign.

LINK needed more daily candle confirmations before upward continuation. Long-term, increased DeFi adoption and reduced exchange supply supported bullish price action.

A move past $30.00 would confirm LINK’s recovery, with a strong probability of reaching $37.00.

What Plummeting Chainlink Supply on Exchanges Means?

Analysis of Chainlink’s exchange supply dropped to 0.147, marked a sharp decline. Historically, such trends signaled whale accumulation rather than sell-offs.

This pattern suggested a potential supply shock in the coming months. LINK’s price fell to $17.80, correlating with the declining exchange supply.

Despite short-term weakness, supply reduction often preceded strong price rebounds. The last major supply drop in late 2024 led to LINK rallying from $9.50 to $25.00.

Whales accumulated aggressively as retail panic-selling increased. OTC transactions likely influenced price suppression, ensuring accumulation at lower levels.

The market’s current manipulation phase suggested institutions were positioning for future price surges.

LINK exchange supply ratio | Source: CryptoQuant

LINK needed to reclaim $19.50 to confirm strength. A continued decline below $15.00 might trigger a test of $12.80.

Shrinking exchange supply, combined with increased DeFi adoption, positioned LINK for a potential breakout in the short-term which could ignite the long-term uptrend continuation.

Once demand outpaces supply, LINK could surge toward $30.00 and eventually $37.00.

DeFi Market Trends TVL Volume and Raises Growth

Chainlink’s also TVL surged past $20 Billion, showing increased capital flow into DeFi projects. Historically, rising TVL correlated with LINK’s price appreciation.

Trading volume peaked at $1.8 Billion, reflecting heightened market activity.

A previous spike in 2021 led LINK to all-time highs, making similar patterns at the current market conditions worth monitoring.

The rise that reached $3.5 Billion indicated significant funding within the DeFi space.

More investments suggested institutional confidence, which historically led to long-term price increases.

LINK TVL | Source: DefiLlama

Despite recent price consolidation at around $18, LINK held above this key support levels.

A breakout past the $20 psychological level could trigger a move toward $30.00 and $37.00.

LINK needed sustained TVL growth to confirm market confidence. If TVL declined, LINK might retest $16.00 or even $12.80.

Rising TVL and investments positioned LINK for a bullish cycle. If demand outpaced supply, LINK could reach $40.00, reinforcing its role in DeFi.