Chainlink Exchange Supply Falls and Price Drops Hard—Will Chainlink Hold the Trendline?

Chainlinks long-term trendline has supported price since 2023, marking it as an area traders are monitoring for the next directional move.

Short-term Elliott Wave analysis shows strong support between $13.30 and $12.14 as Chainlinks descending trendline restrict recovery attempts.

Exchange supply of Chainlink fell from 180 million to 132 million tokens, a sign of sustained accumulation by larger holders even as the market remains uncertain.

Chainlink trades near $14.05 after a sharp 9.22% intraday drop, adding to its weekly losses. Price is currently pressing against a long-term support trendline,and traders are keenly watching this zone to see if steady sentiment , rising volatility and heavy trading activity will flip the trend.

Long-Term Trendline Tested Again

Chainlink has returned to a rising trendline that has shaped the market structure for more than two years. The move comes after a pullback from the mid-$20 range, leaving the token near $14.20 where buyers previously stepped in.

Chartered analyst Ali Martinez shared a chart showing repeated reactions along this trendline, each touch forming a higher low. The market now approaches another test that may define the next broader move.

A break beneath the structure could expose lower trading zones near $12, $10.50, or $9, depending on momentum across the market. Traders are evaluating whether this long-term pattern can maintain its influence.

Corrective Structure and Short-Term Pressure

Chainlink is also trading within a short-term corrective pattern, according to a post from More Crypto Online. The chart outlines a complex wave structure pointing toward the $13.30 to $12.14 region.

The tokens descending trendline continues to cap recovery attempts, even the recent movement through a Fibonacci retracement zone between $15.5 and $16.7 failed to trigger a breakout.

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Current price action forms a developing five-wave decline, these levels are viewed as potential areas where the corrective phase may end.

Market Behavior Across Pairings and Exchange Supply Shift

Chainlink remains dependent on broader market drivers, particularly Bitcoin’s direction. Momentum remains restricted while LINKBTC stays under its lower-high trendline

The USD pair is still moving inside a clear daily range, with the upper boundary sitting near $16. In the short term, LINK keeps forming lower highs, showing steady resistance around $15.40

On the downside, support near $13.50 remains intact. Any recovery attempt would require a clean break above the descending trendline.

At the same time, a new metric is drawing attention. Chainlink available on exchanges has fallen sharply from 180 million to 132 million tokens this year

This is a sign ongoing accumulation by large holders during a period of market caution.

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