610,000 LINK Moved in a Day — Will THIS Derail Chainlink Price Breakout?

Chainlink (LINK) market has seen a significant shift with an influx of 610,000 LINK moved to exchanges in the last 24 hours. Chainlink price indicated a potential increase in selling pressure.

This movement correlates with a visible uptick in exchange inflows, as illustrated in the accompanying chart, where spikes in inflow align with dips in the LINK price.

As the price trends downward, the recent surge in exchange supply could further pressure the market, possibly leading to lower prices in the short term.

However, this could also present a buying opportunity for investors who believe in the long-term value of LINK and are willing to hold through volatility.

Historically, such spikes in selling pressure have sometimes been followed by quick recoveries, suggesting that the current increase in supply on exchanges might be temporary.

Signs of stabilization or continuation of the downtrend could help make informed decisions. For those looking to capitalize on potential moves, maintaining patience and observance could be key.

Chainlink Price Biggest Breakout in Years—Is $100 Next?

Chainlink price shattered its persistent downtrend since 2021, signaling a bullish turnaround that has caught the attention of crypto investors.

Currently trading above the critical 21-month EMA, LINK is reinforcing its position above past resistance, now turned support. With the downtrend line decisively broken, LINK sets its sights on ambitious price targets of $53, $100, and even $144.

Such milestones are viewed not just as theoretical but feasible, given the recent surge in trading volume and investor interest.

This breakout suggested that Chainlink was transitioning from bearish to bullish sentiment, as traders and long-term holders alike reassess their strategies around these new support levels.

The current market dynamics could fuel further upward movements, especially if broader market conditions stabilize, providing a solid foundation for growth.

Sustained trading above the 21EMA and the recent downtrend line could serve as key barometers for Chainlink’s short to medium-term price direction.

While optimism is warranted, market participants should remain vigilant of potential retracements. Typical in volatile markets, as LINK approaches its next set of challenges towards the $53 mark and beyond.

$19M Liquidation Hits LINK

Recent data from Chainlink’s liquidation chart also revealed a significant imbalance. The likes of which haven’t been seen in a while.

With nearly $19.46 Million in cumulative long liquidations and an ongoing surge in market inflow. Chainlink price is experiencing heightened volatility.

This activity primarily reflected on the exchanges Binance, OKX, and Bybit, which have seen an abrupt spike in trading activity. Particularly with a drastic increase in long liquidations that peaked coinciding with a price spike to $14.77.

This development could spell various scenarios for Chainlink. Typically, such a surge in liquidations indicated a mass exit from long positions. Potentially leading to a short-term price decline as market sentiment wavers.

LINK exchange liquidation map | Source: Coinglass

However, if Chainlink can stabilize and hold key support levels, this could also be seen as a shakeout of over-leveraged positions, setting the stage for a possible recovery.

The $14 level could determine whether Chainlink price can maintain its current position or if it might face further declines. Conversely, a return to stability might encourage re-entry by investors looking for a rebound. Particularly if the broader market conditions show signs of recovery.