- Whale accumulation: Large holders continue buying LINK, removing tokens from exchanges despite price weakness.
- Price remains corrective: LINK trades inside a descending channel with support near $11.92.
- Market stabilization: Deleveraging and neutral derivatives sentiment suggest patience and gradual accumulation over panic.
Chainlink — LINK, has been trading under pressure, but large holders remain active rather than panicking. On January 19th, a whale withdrew 404,000 LINK from Coinbase, removing roughly $5.5 million from circulation. Over the past four months, this address accumulated 3.32 million LINK near $15.56. These moves show conviction rather than short-term speculation. While retail participants remain cautious, exchange outflows suggest strategic accumulation is underway beneath the visible price weakness.
Price Action and Whale Accumulation
LINK continues respecting a descending channel on the daily chart. After a brief upside attempt, the price slipped back inside the channel. Currently, LINK hovers near the lower half of the channel, struggling to maintain momentum. Support sits at $11.92, while resistance aligns around $14.69. Buyers remain active, forming higher reactions near support, which suggests demand is not absent. RSI dropped to 42.88, showing weakening momentum, but not extreme exhaustion.
Whales rarely chase short-term momentum. Instead, they accumulate in areas dominated by fear. Repeated withdrawals reduce readily available supply. This accumulation often matters during later rebounds. While price has yet to respond positively, structural positioning favors long-term stability rather than panic-driven selling. Exchange data supports this narrative, showing net outflows of roughly $2.55 million on January 19th, despite price trading near $12.78. LINK continues moving off centralized platforms consistently.
Derivatives and Market Sentiment
Open Interest fell about 8.6%, settling near $582 million. This decline shows traders exiting leveraged positions rather than aggressively shorting LINK. Typically, sharp bearish phases see rising Open Interest as shorts build. In this case, the market appears to be deleveraging, allowing price to base more organically near support zones. Reduced leverage also lowers liquidation risk, which benefits accumulation phases.
Funding recently turned slightly negative near -0.004%, showing traders pulling back from directional bets. Longs no longer dominate, while shorts remain cautious. Derivatives sentiment sits neutral, reinforcing a cooling phase rather than aggressive selling. Funding has not dropped deeply negative, avoiding conditions that often signal crowded shorts. This environment favors patience and base building, supporting gradual accumulation over rapid price swings.
Whales continue withdrawing LINK, keeping supply tight on exchanges. Price remains corrective, moving within the descending channel, while leverage steadily unwinds. The combination of active accumulation, supportive derivatives data, and cautious funding signals structural stability. If buyers defend channel support, these moves could eventually translate into recovery attempts. For now, the market remains in a cooling phase, favoring measured positioning over urgency or panic.
For now, Chainlink demonstrates weakness in the short term, but whales are positioning strategically. Exchange outflows and accumulation patterns indicate confidence rather than fear. Derivatives data points to deleveraging and cautious sentiment. LINK appears to be stabilizing structurally, with potential for gradual recovery if support levels hold.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed