Chainlink is entering a critical stage as Accumulation increases, but on-chain signals still lean towards a downward trend.

Chainlink (LINK) has proven to have strong trust among investors as nearly 90,000 wallet addresses have accumulated over 376 million tokens around the price of $6.26.

This price range has now become an important "support wall", serving as a potential foundation for future growth spurts.

Significant buying volume often reflects the long-term confidence of investors, while also creating pressure to drive prices higher.

However, the technical signals and on-chain data are showing a clear divergence, raising the question: Is the current support level strong enough to spark a bullish reversal trend?

Chainlink: Sustainable Recovery or Preparing for a Deeper Correction?

As of the time of writing, the price of LINK is trading at $12.88, down 1.14% in the last 24 hours.

Price movements indicate that LINK is oscillating around the support level of $12.57 after breaking a long-term downtrend. This is considered an important price threshold; if buying pressure is strong enough, LINK could definitely aim for the resistance zone of $15.57 and further towards $17.78.

Conversely, if the sellers regain control, it is entirely possible for LINK to retrace to the next support level at $10.17.

Source: TradingViewTherefore, the short-term trend of LINK will largely depend on whether the buyers can successfully defend this foundational price area.

What does the data from the exchange reveal?

The number of LINK deposit addresses on the exchange has increased by 1.54%, while the number of withdrawal addresses has only increased slightly by 0.78%. This indicates that many investors are transferring tokens to the exchange, possibly in preparation for selling.

However, the withdrawal cash flow still shows positive signs, reflecting the presence of long-term investors who maintain their confidence and choose to store tokens outside the exchange.

Source: CryptoQuantOverall, data from the exchange reflects a cautious to neutral sentiment as the market weighs between technical signals and a macroeconomic context that remains volatile.

On-chain Signals: Downtrend Still Dominates

Current on-chain indicators are largely leaning towards a negative trend.

The net network growth only reached a modest 0.15%, indicating that the pace of attracting new users is slowing down. At the same time, the percentage of addresses that are “in profit” has also decreased by 0.95%, meaning that an increasing number of holders are experiencing losses compared to their purchase price.

In addition, the concentration level of large holders has decreased by 0.17%, while the number of large transactions has dropped by 12.28%, indicating that "whales" are reducing their level of participation and gradually divesting.

The long/short MVRV index recorded a level of -6.37%, reflecting that short-term holders are suffering more losses than long-term holders — a signal that often appears when the market is in a state of panic and weak sentiment.

Source: SantimentHowever, negative conditions like the current ones can sometimes be the precursor to recovery, especially if the accumulation force returns in the near future. Therefore, closely monitoring price movements around support zones will be strategically significant in the coming days.

Conclusion

Chainlink needs to hold the support level of $12.57 and quickly recover through the resistance zones above to confirm the return of the bullish trend.

However, at the current time, the on-chain indicators are still leaning towards the bears, and the selling pressure has not shown any significant signs of easing.

Therefore, LINK is still not fully ready for a price breakout - and the risk of further correction remains if there is no strong buying force in the short term.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

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Mr. Teacher

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