Chainlink increased its reserve by adding 81,131 LINK in a single day, and this pushed total holdings to more than 1,054,884 LINK.
This sharp growth signals strong long-term confidence because such accumulation removes meaningful supply from circulation.
Furthermore, Chainlink’s [LINK] price benefits when structural demand expands while traders position for future utility.
The rising reserve also interacts with recent market behavior, since it supports higher lows and reduces volatility during pullbacks.
Meanwhile, the accumulation aligns with bullish recovery efforts because it strengthens the broader ecosystem.
Despite varying short-term reactions, traders anticipate higher levels as long as reserves continue rising across the protocol.
Shrinking Exchange Reserves tighten sell-side supply
At press time, Exchange Reserve USD dropped 3.3%, and this decline reshapes the market’s liquidity profile significantly.
Traders now deal with reduced sell-side inventory, which improves the probability of upside continuation because fewer tokens sit on exchanges waiting for distribution.
LINK price often reacts strongly when available supply weakens after major drawdowns, and this trend appears to mirror earlier phases of accumulation.
Additionally, shrinking reserves support stronger rebounds because buyers encounter less friction while breaking resistance.
However, traders still monitor whether upcoming volatility expands the liquidity pool again. For now, sellers lose influence as circulating supply thins across major venues.
Source: CryptoQuant
Taker buy pressure accelerates spot-side momentum
Notably, the Taker Buy CVD remains dominant across the 90-day window, and this pattern confirms aggressive spot-market participation.
Buyers consistently step in during dips, and this behavior reinforces the strong rebound seen in LINK price.
Besides, this surge in buyer-initiated trades aligns with the protocol’s growing reserve, creating a unified story across on-chain and order-flow metrics.
Additionally, strong taker-side aggression often precedes decisive breakouts because it demonstrates conviction from active traders rather than passive holders.
Yet, the market still needs a clear reclaim of $14.93 to validate this momentum fully. Even so, current conditions lean firmly toward bullish continuation.
Source: CryptoQuant
Double-bottom rebound fuels bullish continuation hopes for LINK price
LINK rebounds sharply from the $12 demand zone after forming a clean double-bottom structure, and this pattern often marks significant trend reversals.
The chart shows a strong impulsive leg after the second bottom, and this move reclaims lost ground with notable conviction.
Additionally, the structure now places the next key levels at $14.93, $16.63, and $17.62.
These levels define the breakout path as traders watch whether Chainlink price sustains higher lows throughout the week. However, the market must hold above the $13.94 region to maintain bullish structure.
If momentum strengthens, LINK may approach the upper two resistance bands sooner than expected.
Source: TradingView
Positive funding signals renewed confidence from leveraged traders
OI-Weighted Funding Rate flipped into positive territory at +0.0071%, at press time, and this shift signals renewed confidence among long-side traders.
Leveraged buyers show greater willingness to hold positions as LINK price recovers from recent lows.
Moreover, rising funding corresponds with periods of strong spot-side pressure, which enhances the probability of sustained upside.
However, funding remains modest, which reduces the risk of excessive long-side clusters forming prematurely.
Additionally, the balance between funding and order-flow strength creates a more stable environment for continuation moves.
Traders, therefore, watch for increases in open interest to confirm a broader shift in derivatives sentiment.
Source: CoinGlass
Is Chainlink price ready for a breakout?
Chainlink price now benefits from strong accumulation, shrinking exchange supply, dominant taker-buy pressure, and a confirmed double-bottom reversal.
These elements combine to create a favorable environment for higher targets such as $14.93, $16.63, and $17.62.
If funding continues rising while the market maintains a structure above $13.94, LINK may attempt a full upside breakout soon.
Final Thoughts
- Chainlink’s accumulation, shrinking exchange reserves, and strong taker-buy pressure reinforce a bullish setup toward higher resistance levels.
- Sustained funding strength and stability above $13.94 could pave the way for a decisive breakout in LINK price.
Source: https://ambcrypto.com/chainlink-rebounds-heres-why-link-targets-16-and-beyond/
