Chainlink [LINK] witnessed a slight reduction in exchange reserves, indicating decreased sell pressure.

Chainlink [LINK] witnessed a slight reduction in exchange reserves, indicating decreased sell pressure.

Chainlink [LINK] has seen a slight decrease in exchange reserves, indicating less sell-related pressure. On the 1-day chart, the token was still in a bullish trend, according to the SuperTrend indicator.

Source: Glassnode

The Net Unrealized Profit / Loss metric went to capitulation levels in the first week of April. At the time, LINK was trading at $11. Afterward, the metric’s movement was similar to the August-September 2024 period.

This period saw a local market bottom before a large rally pushed Chainlink prices to $29. The NUPL showed that bearish sentiment was strong.

Will another rally come in the next few months?

There are good chances of a Chainlink recovery

Source: Glassnode

The 7-day Moving Average of the Net Transfer Volume to / from Exchanges had negative values since the last week of March. These values showed LINK flowing out of exchanges, which ties into the exchange reserve reduction mentioned earlier.

The persistent flow of Chainlink tokens away from exchanges showed investors’ preference for holding onto their tokens. This was bullish and signaled no immediate signs of a rally.

Source: IntoTheBlock

Data from IntoTheBlock showed a decline in large transactions over the past three weeks. Together with LINK flowing out of exchanges, it pointed to less selling pressure from large players and ongoing accumulation.

However, it also showed that whales were cautious about buying and preferred to wait for clear market trends to make a move. Overall, investors can be cautiously optimistic in the long term.

Source: LINK / USDT on TradingView

The 1-day price chart showed a range formation between $10.8 and $15.5. In the past ten days, Chainlink faced resistance near the range highs and was falling toward the middle-range support at $13.18.

However, since March, the OBV has been rising, showing that buying volume was increasing. An OBV uptrend during a prolonged consolidation phase is bullish for Chainlink and suggests a move above the range highs in the next few weeks.