Mapping Chainlink’s path to $31 as LINK defends KEY price level

Key Takeaways 

Whales accumulated 1.25 million LINK as exchange outflows reduce liquid supply. On the other hand, spot activity heats up while short liquidations mount, boosting upside risk.

Over the past 48 hours, whales have purchased 1.25 million Chainlink [LINK], giving an indication of aggressive accumulation during a period of heightened market activity. 

Meanwhile, Exchange Netflows showed a recent $1.84 million outflow, reinforcing the signal that fewer tokens are available for trading. It seemed that there is a growing conviction among large holders who are opting to reduce the liquid supply. 

At press time, LINK traded at $23.44, resting above a key Fib extension level. This whale-driven tightening could act as the foundation for a potential supply squeeze.

LINK shows a rounded bottom breakout 

Chainlink’s weekly chart was inferred as a rounded bottom formation, suggesting a long accumulation phase followed by a bullish breakout attempt.

In fact, the altcoin cleared the $23.69 Fib extension, testing resistance inside the $28–$32 supply zone, at the time of writing. A successful breakout could open targets at $31.57, $39.45, and even $44.32 according to Fib levels.

Supporting this move, the MACD lines stayed in bullish alignment, with the blue line above the signal line and histogram printing positive momentum.

However, failure to hold above $23 could trigger a retest of the $18.82 support.

Spot market activity heats up for LINK

The Spot Volume Bubble Map confirmed expanding activity as trading volume accelerated, reinforcing the narrative of growing market engagement.

Rising spot activity often signals stronger conviction from retail and institutional players alike. 

This surge suggested that buyers were actively positioning while sellers remained cautious. 

Having said that, volume heating typically accompanies structural breakouts, providing further support to the bullish chart setup. 

However, the same pattern can trigger volatility spikes, leaving the next sessions unpredictable for LINK traders.

Are shorts feeling the squeeze above $23?

Liquidation data revealed shorts were increasingly being forced out of positions, with $180K wiped in recent hours compared to just $14K in longs. 

The imbalance showcased the pain point for bearish traders as LINK maintains stability above the $23 handle. 

Naturally, when short liquidations accelerate, forced covering tends to fuel additional upside.

Therefore, if bullish momentum continues, sellers may be squeezed further, creating conditions for another sharp move higher. Having said that, sustained consolidation is still needed to avoid a bull trap.

To sum up, whale accumulation, reduced exchange supply, heated Spot Volume, and short liquidations combine to form a bullish backdrop for Chainlink.

The technical setup aligned with this narrative, suggesting that LINK could target the $31–$40 zone if momentum holds. 

However, resistance within the supply area remains a critical obstacle. If buyers push through, the case for a breakout toward fresh highs strengthens significantly.