- Chainlink added more than 8,000 new holders, with exchange outflows signaling continued investor accumulation.
- LINK remains above key support, but a breakout depends on stronger buying demand.
Chainlink is attracting new users even as its price remains under pressure. The network has added more than 8,000 new holders in just five days, showing that investor interest continues despite the ongoing downtrend.
On-chain data also point to steady accumulation, with more LINK leaving exchanges than entering. While the price has yet to confirm a bullish breakout, growing adoption and positive derivatives data suggest buyers have not given up.
Chainlink Adds More Than 8,000 New Holders
Chainlink’s network has continued to expand, with non-empty wallets climbing to nearly 893,000. The addition of over 8,000 new holders in less than a week highlights growing participation across the ecosystem.
The increase comes at a time when LINK is still trading below recent highs. This suggests that investors are continuing to accumulate rather than chase short-term price rallies.
Growing interest in real-world asset tokenization and institutional blockchain adoption has also helped strengthen confidence in the network. Instead of being driven only by speculation, the steady rise in wallet addresses reflects broader user engagement.
Exchange Outflows Point to Continued Accumulation
Recent exchange activity paints another positive picture for Chainlink. Data shows that approximately $479,000 worth of LINK left centralized exchanges over the past day.
Exchange outflows are generally viewed as a sign that investors are moving their holdings into private wallets for longer-term storage instead of preparing to sell them. This reduces the amount of LINK readily available on exchanges.
Although the market has remained cautious, the continued outflows match the rise in wallet growth. Together, these indicators suggest that accumulation is still taking place even as price action remains weak.
Chainlink Price Continues to Defend the $7 Support
LINK remains inside a descending channel that has defined its recent trend. Even so, buyers have repeatedly defended the important $7.00 support level, preventing a deeper decline.
The next major resistance sits around $8.31. A move above that level could signal that buyers are beginning to regain control of the market.
Meanwhile, RSI remains below the neutral 50 level at around 34.6. This indicates buying activity is still limited, although selling pressure has eased compared to previous weeks.
As long as LINK stays inside the descending channel, traders will likely wait for stronger buying volume before confirming a trend reversal.
Bullish Funding Shows Traders Remain Optimistic
Despite the recent correction, derivatives traders continue to show confidence in Chainlink.
The OI-weighted funding rate remains positive, indicating that traders holding long positions are willing to pay a premium to keep their trades open. This usually reflects expectations of higher prices over time.
However, positive funding alone has not been enough to trigger a breakout. Spot market demand remains relatively weak, limiting the pace of any recovery.
If buying activity increases while accumulation continues, the positive sentiment in the derivatives market could provide additional support for a move above resistance.
Can Chainlink Break Its Downtrend?
Chainlink continues to build a stronger on-chain foundation as new holders join the network and investors withdraw LINK from exchanges. These trends point to growing confidence despite the current market weakness.
The $7.00 support remains the key level to watch. If buyers continue defending it and demand improves, LINK could eventually break above its descending channel and challenge higher resistance levels. Until then, the broader trend remains cautious, but the underlying signs of accumulation continue to strengthen.
ALSO READ: Uniswap Governance Considers Deploying V4 on the 0G Blockchain
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.