Chainlink Drops 3.9% Amid Whale Activity, Network Growth

Chainlink [LINK] experienced a 3.9% price decline over the past 24 hours, following a 21.6% increase from the 9th of April to the 21st of April. This recent dip suggests a potential short-term correction, but the token has been in a steady downtrend for much of 2025. The exchange reserve metric indicates that Chainlink has been flowing out of exchanges since July 2024, which is a bullish sign as it points toward accumulation. Holders moving their tokens out of centralized exchanges typically indicates movement to cold storage, reducing selling pressure.

Data from IntoTheBlock shows that the 7-day new addresses change was +40.97%, and the active addresses have grown by 18.46%. During this period, the price growth was 6.88%. This increased network activity signals more adoption and demand for LINK, leading to price growth. However, it is important to note that the network activity is still far below the levels reached during the November and December highs. Investors should not be overly optimistic about sudden upticks in activity but should await sustained adoption to indicate increased utility.

A recent report highlighted that 46.1% of the Chainlink supply is controlled by whales. Over the past ten months, the exchange netflow metric saw sudden, sharp LINK inflows to exchanges. The most recent inflow occurred on the 14th of March, when 14.57 million Chainlink tokens were sent to exchanges. This could be for selling or using as collateral in trading coin-margined futures. Since this inflow, the netflow metric has reflected LINK movement out of exchanges. However, other days saw enormous inflows, while the outflows were rarely as large, which could be a sign of whales selling their holdings, eroding some long-term bullishness.

Over the coming days, Chainlink needs to surpass the $14-$14.5 resistance zone before its chances of a rally appear good. The $15.55 is the key resistance on the 1-day timeframe. A breakout beyond this level would represent a bullish structure break and could offer a buying opportunity for swing traders.