Chainlink Records Largest Exchange Outflow Since June, Bullish Signals Emerge
Chainlink (LINK) recorded a significant net exchange outflow of 1.26 million tokens over 24 hours, marking the largest daily outflow since June 29, according to Santiment. The drop in exchange supply means fewer LINK tokens are available for quick sell orders, potentially lowering the risk of a sell-off.
The timing of this outflow coincides with several positive developments for Chainlink. In July, the DTCC processed tokenized US securities trades with Chainlink listed among its technology providers. Additionally, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) expanded support across institutional and crypto networks, including Canton and Robinhood Chain. Santiment believes these developments could be favorable for patient LINK bulls.
Price action has been volatile. LINK started July near $7.85, briefly dipped below $7.60, then recovered to break above $8 and reach around $8.86. However, the rally did not hold, and by August, LINK pulled back toward $8.20. Against this backdrop, whale activity around Chainlink has picked up significantly, reflecting stronger confidence among major holders. The network also ranked second in Santiment’s RWA development ranking, behind Hedera, after showing improved activity compared with the previous month.
Pseudonymous market watcher ‘The Boss’ noted that LINK is testing whether it can break out of its downtrend. The asset has held a long-term demand zone while challenging a descending trendline that has repeatedly rejected price. According to the trader, the structure has strengthened, but confirmation is still needed. A break above the first resistance of $11.62 could mark LINK’s greatest technical recovery since the decline began.
Zooming out, Chainlink is seeing wider adoption across its ecosystem. Dozens of projects have switched to its technology in recent months, including Kraken’s kBTC, Solv Protocol’s SolvBTC and xSolvBTC. BitGo also announced moving its cross-chain infrastructure to Chainlink’s CCIP. The move comes as more projects shift away from LayerZero following the $292 million KelpDAO bridge exploit earlier this year.
With reduced sell-side pressure from exchange outflows, increased whale accumulation, and growing CCIP adoption, LINK bulls are watching for a potential breakout above key resistance levels.