Chainlink (LINK) Surges Toward $35 After Massive $20M Token Exodus

Chainlink (LINK) has experienced a 30% correction, marking the first major retracement of its current cycle. 

According to crypto analyst Michaël van de Poppe, such corrections occurred more than 15 times in LINK’s previous cycles and often preceded strong recoveries. Referencing the current setup, van de Poppe stated,

“I’m expecting an upwards run towards $35 on Chainlink.”

The green support zone between $22 and $23 represents a critical buying area, where LINK has found strong interest. LINK’s price is consolidating near $25.66, with a 6.14% gain in the last 24 hours and a 23.85% gain over the past week. 

Immediate resistance lies at $27, with a breakout above this level opening the potential for a rally toward $35.

Exchange Supply Decline and Accumulation Trends

On-chain data from Santiment shows that 770,000 LINK tokens were withdrawn from exchanges on January 20, 2025. These withdrawals, equivalent to approximately $20 million, suggest increased accumulation by holders and institutions moving tokens to private wallets. 

Historically, such large outflows often precede upward price movements due to reduced supply on exchanges.

During this period, LINK’s price rose from $24.50 to $25.90, reflecting the demand-driven rally. 

CryptoQuant data also reveals that LINK’s Exchange Supply Ratio has dropped steadily, declining from 0.173 on December 22 to 0.163 on January 21, indicating a sustained shift of tokens away from exchanges.

Institutional Activity Supports LINK’s Rally

Recent institutional activity has also fueled LINK’s momentum. Trump’s World Liberty Financial (WLFI) reportedly purchased $4.7 million worth of LINK, according to Arkham Intelligence. This forms part of a larger $50 million cryptocurrency investment by WLFI, bolstering market confidence in Chainlink’s potential.

Such strategic purchases have contributed to LINK’s recovery from a low of $18 on January 7 to $26 on January 21, a price increase coinciding with the declining exchange supply. 

The positive price movement aligns with growing optimism among analysts, supported by strong on-chain and institutional indicators.

Technical Indicators Point to Further Upside

The Relative Strength Index (RSI) for LINK is trending upward, indicating improving momentum without reaching overbought conditions. This suggests room for additional gains as traders eye the critical $27 resistance level. 

A successful breakout above this range could set the stage for a rally toward $35, a key target for bullish traders.

However, failure to hold the $22-$23 support zone could result in a potential retracement toward $20-$21. Traders are closely monitoring price action and volume for signs of a confirmed breakout or continued consolidation. 

LINK remains a focus of attention as its current setup signals the potential for further bullish momentum.

FAQs: