Chainlink (LINK) is showing signs of potential major growth amid market changes. Analysis reveals the strengthening of a long-term bullish pattern and decreasing supply of tokens on exchanges.
Big Pattern, Bigger Potential
Chainlink is forming a symmetrical triangle, which typically precedes explosive moves following a breakout. Currently, LINK is trading around $22, holding above the $21.60 Fibonacci retracement level that has previously served as a strong support.
Supply Draining from Exchanges
On-chain data shows that LINK's reserves on exchanges are steadily decreasing. From over 200 million tokens in mid-2022, the amount has fallen to 163.5 million, which might indicate that investors are pulling tokens into long-term storage.
Short-Term Dip Could Be the Launchpad
Despite the strong outlook, Chainlink's market cap has decreased from over $16.2 billion to below $15 billion. However, each dip has been followed by a small rebound, indicating that buyers are still present even amid volatility.
Chainlink shows resilient signs of accumulation, and the decreasing reserves on exchanges may indicate a long-term perspective. Short-term fluctuations may serve as the last shakeout before an expected rise.
