Chainlink Whales Move $26M From Binance as Market Tension Rises
Whales have withdrawn $26 million worth of Chainlink (LINK) from Binance, signaling strong accumulation and reducing liquid supply on exchanges. This trend indicates a shift towards private wallets for long-term holding, potentially lowering selling pressure. The withdrawals coincide with increasing discussions about spot ETFs and the addition of a Bitwise Chainlink ETF in the DTCC's active and pre-launch categories, hinting at growing institutional interest and demand. Analysts suggest these movements could be a precursor to a 'supply shock,' where reduced exchange supply could amplify price increases. Currently, LINK trades at about $15.84, with some predicting a potential 10x rally to the $150-$160 range.
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Whales Trigger Large Chainlink Withdrawals
Whales withdrew $26 million worth of Chainlink (LINK) from Binance, indicating a trend of strong accumulation and a tightening liquid supply across exchanges. The large outflows underscore aggressive whale positioning, which might support stronger market movements if demand continues to rise. Data shared by CryptoOnchain on CryptoQuant highlights this significant trend, with approximately $26 million worth of LINK leaving Binance in recent days.
Renewed Market Energy Amid Spot ETF Discussions
The timing of these withdrawals coincided with renewed discussions around spot ETFs, intensifying market activity. Discussions surrounding Chainlink’s large outflows and interest in spot ETFs have made the market seem hotter than before. Additionally, major market players seem to be actively moving tokens to private wallets, further impacting the market landscape.
LINK Emerges as an Outlier Among Altcoins
Examining the Binance Altcoins Token Netflow chart paints a unique picture—while most altcoins exhibit 'normal' patterns, LINK showcases a distinct and substantial outflow. This singular behavior suggests a different market dynamic for LINK compared to its peers. Unlike typical interpretations of large outflows as a risk signal, when whales transfer tokens to private wallets, it implies long-term holding expectations, reduced immediate selling pressure, and an overall optimistic sentiment.
Chainlink's Positive Sentiment Bolstered by Developments
The Chainlink Rewards Season 1 program actively increased holder participation and further strengthened market optimism. The combination of large outflows and the renewed excitement around spot ETFs underscores a positive narrative for LINK holders. Notably, the DTCC's addition of the Bitwise Chainlink ETF to the active and pre-launch categories has contributed to heightened anticipation. However, analysts remind investors that this does not guarantee regulatory approval, as the SEC process remains critical and often unpredictable.
Institutional Appetite and Potential Supply Shock
Institutional interest in LINK appears to align with the spike in withdrawals from Binance recently. Many analysts interpret this as whales positioning themselves for a potential demand surge if the spot ETF is approved. The contrasting trends—LINK outflows versus the **inflows of tokens like UNI—**make the market's direction clearer. This outflow behavior further suggests the possibility of a “supply shock,” where shrinking supply can fuel faster price increases with even modest demand uptake.
Price Analysis and Technical Insights
From a technical analysis perspective, popular analyst Don identified that LINK's price is still trading in a descending channel pattern. A breakout from this channel could potentially trigger a 10x rally, taking LINK's price to the $150-$160 range. As of now, LINK is trading at $15.84, reflecting a 3.59% rise in the last 4 hours and a 2.88% increase in the last 24 hours.