Chainlink has been oscillating within a descending price channel since being rejected at the resistance area around the 23 USD mark about two months ago.
On the daily timeframe, the price of Chainlink (LINK) has bounced back from a low of 11.7 USD and is trading around 12.5 USD at the time of writing.
However, this recovery is still not enough to reverse the overall trend, as LINK recorded a decline of 8.78% for the week and 9.25% for the month, reflecting that selling pressure still prevails. Notably, in that context, the supply wallet of uncirculated Chainlink has made a significant token transfer, attracting market attention.
The supply wallet of Chainlink has unlocked tokens
According to Onchain Lens, the uncirculated supply wallet of Chainlink has just unlocked 11.25 million LINK, marking a noteworthy on-chain movement.
Of this, 9.23 million LINK – equivalent to about 116 million USD – was transferred to Binance through two large deposit transactions. Specifically, one transaction recorded about 5.22 million LINK, while the other transferred nearly 4.0 million LINK. The remainder, 2.02 million LINK (approximately 25 million USD), was moved to a multisig wallet linked to the Chainlink ecosystem.
Notably, this is the first transfer from this wallet in over two months. In the past, large token deposits to exchanges have often been seen as a potential signal for upcoming selling activity.
Data from CryptoQuant also clearly reflects this trend. At the time of writing, exchange inflows surged to 10.2 million LINK, while outflows only reached about 1.1 million LINK. As a result, exchange netflows climbed to nearly 9.1 million LINK, the highest in two months.
However, after the initial peak, netflows quickly cooled off and returned to around -117,000 LINK at the time of recording. This development indicates that selling pressure has somewhat diminished after the initial wave of large token deposits, helping the market stabilize temporarily.
Buyers entered around the 12 USD mark
Notably, despite the pressure from large inflows into exchanges after the token unlock, LINK has remained resilient above the support level of 12 USD, thereby limiting the risk of a continued market decline.
This move has triggered bottom-fishing demand, helping the altcoin bounce back. Data from Coinalyze shows that the buying volume reached about 3.5 million LINK, slightly exceeding the 3.2 million LINK on the sell side.
This discrepancy creates a positive Buy/Sell Delta of nearly 300,000 LINK — the first time recorded in two weeks — reflecting a noticeable improvement in short-term demand.
At the same time, LINK's Stochastic RSI indicator formed a bullish crossover and rose to 23, although it still remains in the oversold territory. This development suggests that the bulls' momentum is strengthening, but not yet strong enough to confirm a clear trend reversal.
In a positive scenario, if buying pressure continues to successfully defend the 12 USD mark, LINK could aim for a recovery towards the 13.02 USD region. A stronger rebound could open up the potential to test the next resistance area around 13.7 USD.
Conversely, if this support level is breached, the price risks sliding back towards the 11 USD area, with the 10.9 USD mark seen as a crucial defense zone to watch closely.