Chainlink's token LINK continued its rebound on Wednesday, rising more than 4% on the day. LINK's strength was accompanied by improved signals across multiple chains, including increased holdings by whales, larger net outflows from exchanges, and a continued increase in the number of addresses holding the token, all against a backdrop of a market recovery driven by Bitcoin and Ethereum.
A whale bought 273,800 LINK tokens in two days.
On-chain tracking data shows that an anonymous major investor purchased approximately 273,793 LINK tokens over the past two days, amounting to nearly $2.17 million based on an average purchase price of approximately $7.94. This latest purchase occurred shortly before the data disclosure, indicating that this increase in holdings was not a single transaction.
Meanwhile, LINK is also seeing increased outflows from exchanges. In the past 24 hours, LINK saw a net outflow of over $6.6 million from exchanges; over the past 7 days, this figure has approached $50 million. The continued transfer of tokens out of centralized exchanges typically indicates a decrease in the short-term supply of tokens and a reduction in selling pressure.
The number of wallets with non-zero balances has exceeded 900,000.
In addition to large-scale purchases, Chainlink's on-chain user data is also on the rise. Latest data shows that the number of LINK non-zero balance wallets has exceeded 900,000 for the first time, setting a new all-time high. In the past month, more than 20,000 new such wallets have been added, while the price of LINK remained near a relatively low level during the same period.
This type of price movement typically indicates that funds continue to flow in during price corrections. In other words, network usage and cryptocurrency holdings are increasing, but price reactions are relatively lagging, and market interest in medium- to long-term allocation has not diminished significantly.
Short-term focus is on the $8.8 to $9 area.
Looking at recent price action, LINK found support in the $7.2 to $7.4 range before rebounding and regaining its position above short-term moving averages. The original article also mentioned that LINK has broken through the downtrend line since late May, indicating a recovery in short-term momentum.
Next, the $8.8 to $9 range is considered a near-term resistance area, where previous rallies have repeatedly met resistance. If the price continues to hold above this level, market attention may shift further to the $10 area; if it falls back below $8.2, it may first test the breakout area before observing whether subsequent buying continues.
Overall, LINK's recent rebound is not solely driven by market sentiment. The simultaneous occurrence of whale buying, exchange outflows, and wallet growth provides clearer on-chain support for this surge.
