Chainlink (LINK) price demonstrated a powerful recovery by rising 13% following its Tuesday low of $13.18. LINK demonstrated resilience by recovering to $15.25 after the market-wide cryptocurrency downturn, which affected various digital assets.
According to on-chain data from Santiment, the price movement of Chainlink matches an increase in major holder accumulation.
Top 5 Wallets Now Control 18.15% of LINK Supply
The market dynamics of Chainlink show a clear trend where top holders are accumulating an increasing amount of LINK supply. The five largest wallets currently possess 18.15% of the total circulating LINK supply, which has a combined value of $2.93 Billion.
Large investors who are known as whales and institutions have been steadily accumulating LINK because they believe the asset will experience long-term growth.
Binance’s centralized exchange wallet stands as the leader among top wallets by holding $50.59 Million worth of LINK, which elevates its total LINK-related value to $817 Million while representing 5.06% of the total supply.
A non-exchange wallet ranks as the second-largest LINK holder with $40.87 Million worth of LINK that amounts to $660 Million and represents 4.09% of the total supply.
Three non-exchange wallets collectively hold $90 Million worth of LINK tokens which amounts to $1.45 Billion in total value while each wallet controls 3% of the circulating supply.
The wallets tracked by Santiment show an upward trend in their LINK holdings, which suggests accumulation activities instead of distribution activities. Large investors demonstrate their market confidence through accumulation strategies during price dips because they expect future price appreciation.
The ongoing accumulation trend by LINK whales could push prices higher as supply will become more scarce.
LINK’s trading volume volatility creates the possibility of a price retracement when unexpected macroeconomic changes or external market factors occur.
Chainlink (LINK) Price Faces Mounting Sell Pressure as Exchange Supply Surges
The exchange supply of Chainlink experienced substantial changes during the last two weeks when 2.23 million LINK tokens moved to exchange platforms.
The price decline during this period indicates that large holders might be selling their LINK tokens or repositioning their assets.
Santiment data shows a direct relationship exists between exchange deposits and supply changes and market price movements.
The LINK price maintained stability at $19.96 on February 9, 2025, as exchange supply reached 198 Million. The minimal exchange inflows showed that sellers had little influence on the market.
The supply on exchanges fell steadily throughout February, while the price began its downward movement.
A significant increase in exchange inflows occurred on February 19, which caused the LINK price to rally to $19, marking the first major indication of less immediate selling pressure.
LINK supply on exchanges remained stable between February 21 and February 25 while the price kept declining, which shows that the market pressure to sell remained high despite fewer tokens being deposited. With price dropping below $15 while exchange inflows spiked to over 200 million.
Over 2.23 Million LINK Transferred to Exchanges, Triggering a 14% Price Decline
Furthermore, the selling pressure intensified when exchange deposits surged again, which pushed the LINK supply to 197 million by March 1. This further fueled the downtrend.
A substantial LINK transfer to exchanges on March 3 further pushed the exchange supply to 198 million, approaching its previous all-time high.
The market experienced a rapid price drop to below $14 as sell-side pressure intensified during this period.
However, LINK briefly recovered to $15.83 before exchange inflows continued to restrict its ability to gain significant upward movement.
The rising exchange supply during this period demonstrates that investors have shifted their LINK holdings to trading platforms, which typically leads to increased selling pressure.
The ongoing price decline indicates that substantial amounts of LINK tokens have been sold off, despite some transfers possibly being for repositioning.
An increase in LINK exchange supply creates potential risks for the token price to decrease further. A market turnaround becomes possible when accumulation activities start again.
The upcoming period will establish if exchange inflows will stabilize LINK prices or if they will drive prices down further.
Source: https://www.thecoinrepublic.com/2025/03/06/chainlink-price-to-get-a-boost-amid-whale-accumulation/