Chainlink demand surges as withdrawals reach 2 mln LINK: Will this boost price?

Demand for Chainlink [LINK] among investors is rising significantly, even though its price remains stagnant.

Crypto tracker CoinMarketCap showed that LINK gained a modest 3.75% over the past month, with the asset fluctuating within a range, reaching a high of $10 and a low of $8.17 during this period.

As the broader market exhibited signs of recovery, LINK jumped 7.15% over the past 24 hours, trading at the $9.20 level at press time.

Along with the price increase, market participation has also risen, as reflected in trading volume, which has surged by over 65% to $952.83 million.

This rise in trading volume not only indicates higher market activity but also suggests that investors and traders are showing strong interest in the current trend.

Analytics and derivatives data signal bullish sentiment

Analytics tool CryptoQuant shows that long-term investors are highly interested in LINK.

According to the latest data, over 2.046 million LINK tokens have been withdrawn from exchange reserves over the past month, as reflected in a significant decline from 129.427 million on the 24th of February to 127.381 million on the 24th of March 2026.

Whereas, in the past week, a massive drop of 951,000 LINK has been recorded in exchange reserves, indicating that LINK is in high demand among holders.

Falling exchange reserves of any asset typically suggest potential accumulation, as holders tend to move assets from exchanges to their wallets, which is generally considered a bullish signal.

However, this potential accumulation over the past month and in recent weeks also raises questions about whether the current level is an ideal buying zone or not.

According to the derivatives analytics tool CoinGlass, intraday traders are currently following the trend, as they are eyeing long-leveraged positions. As per the data, $8.88 on the lower side and $9.27 on the upper side are the major liquidation levels from the current price.

Traders at these levels have built $4.08 million worth of long-leveraged positions and $2.10 million in short-leveraged positions, indicating that bulls are dominating the asset, while short sellers appear to be losing interest.

LINK: Price action eyes 10% jump 

On the daily chart, LINK appeared to be moving within an ascending channel pattern between the upper and lower boundaries.

Following a recent dip of 14.65% between the 16th and the 23rd of March, the price declined to the lower boundary, where it formed a bullish engulfing candle, suggesting that LINK may be on the verge of a reversal in the coming days.

Based on the current price action, if LINK remains above the upper boundary and the $8.576 level (the low of the engulfing candle), it could see a price jump of 10% and potentially reach the $10.08 level.

Further upside is also possible; however, $10.08 has been a key resistance level since the 1st of February. If LINK clears this level, another 10% rally could occur, potentially pushing the price toward $11.20.

As of now, Chainlink appears to be recovering as the Relative Strength Index (RSI) on the daily chart reaches 52.03, indicating a shift toward bullish territory and growing buying interest, with the asset gaining strength above the neutral 50 level.

Final Summary

• Exchange reserves have declined by 2.046 million tokens over the past 30 days, indicating strong demand.
• The daily chart shows that LINK is moving in an ascending channel pattern. After testing the lower boundary, it may see another 10% price jump in the coming days.