Chainlink Executes Largest Reserve Accumulation as Price Faces Key Support Levels

Chainlink executed its largest reserve accumulation to date, adding 99,103.22 LINK tokens to its official treasury, with the total reserve now valued at more than $19 million according to MEXC data.

Chainlink's price is trading in a strong bearish trend, with 12 bearish signals and price below all major moving averages, indicating deep oversold conditions but limited immediate reversal potential as technical analysis shows.

Despite the bearish trend, U.S. spot LINK ETFs recorded $1.18 million in net inflows, and exchange reserves have dropped significantly, suggesting investor accumulation activity according to MEXC reports.

Chainlink executed its largest-ever reserve accumulation, converting 99,103.22 LINK tokens into its treasury on January 30, 2026 as reported. This move increases the total reserve to 1,774,215.90 LINK, valued at over $19 million at current prices. The strategy reflects a structural shift toward capital recycling and long-term network resilience, with 90 percent of the tokens acquired through Uniswap swaps and the remaining through direct fee revenue according to MEXC data.

The price of LINK remains in a clear bearish trend, with the token trading below all key moving averages and 12 bearish signals across the MA5 to MA200 spectrum. Current price is testing a critical long-term support zone between $8.60 and $9.00 as technical analysis indicates. Technical indicators such as the 14-day RSI at 23.21 and weak volume momentum suggest an ongoing downtrend. A bullish reversal would require a decisive break above the 5-day moving average and a shift in the moving average signal structure according to technical analysis.

On-chain analytics suggest continued investor interest in LINK, despite the downward trend. U.S. spot LINK ETFs saw $1.18 million in inflows on February 5, 2026, while exchange reserves have dropped by 537,020 tokens as reported by MEXC. This reduction in exchange reserves signals potential accumulation as assets are moved off exchanges into private wallets according to MEXC analysis.

What Happened with Chainlink's Reserve Accumulation?

Chainlink's accumulation strategy represents a shift in how leading blockchain protocols manage revenue, supply, and ecosystem incentives according to MEXC. Unlike traditional buybacks or token burns, the network is converting earned revenue into LINK through decentralized liquidity routes. This approach reduces circulating supply in a controlled and sustainable manner without causing price volatility as detailed in MEXC reports.

The 99,103.22 LINK added to the treasury are now effectively removed from active circulation. This strategy aligns protocol revenue with token value and supports future ecosystem initiatives, such as staking incentives or infrastructure expansion according to MEXC data. The move is seen as a structural shift toward long-term planning and network sustainability as reported.

Why Does the Bearish Trend Matter for Chainlink Investors?

The bearish trend in LINK price highlights the broader market uncertainty affecting the crypto sector according to technical analysis. Bitcoin and other major assets have been under pressure due to macroeconomic concerns and ETF outflows, which has spilled over into altcoins like LINK as technical analysis shows.

Technical indicators reinforce this bearish narrative. The token is in a daily downtrend below a descending trendline, retesting the $8.60 to $9.00 support zone according to technical analysis. A failure to hold this support could lead to further downward momentum. Investors are closely monitoring volume and momentum shifts for signs of a potential reversal as technical analysis indicates.

While the current price action is bearish, on-chain data suggests that investor sentiment is not entirely negative. The drop in exchange reserves and ETF inflows indicate that some capital is being deployed into LINK despite the broader sell-off according to MEXC data. This could be a sign of long-term confidence in the network's fundamentals as reported.

What Do On-Chain Indicators Reveal About Investor Behavior?

Chainlink's on-chain activity reflects a mix of bearish market conditions and cautious accumulation. The token's price is in a bearish channel with declining highs and lows according to technical analysis. However, U.S. spot ETFs saw $1.18 million in inflows on February 5, and exchange reserves have dropped by 537,020 tokens as reported by MEXC. This suggests that some investors are accumulating at current levels, viewing the price dip as a buying opportunity according to MEXC analysis.

While LINK is in a bearish trend, the network is generating real revenue and reinvesting it into its economic model as detailed in MEXC reports. This financial discipline is important for institutional investors and developers who evaluate the long-term stability of blockchain protocols according to MEXC data.

The market remains in a state of extreme fear, with the Crypto Fear and Greed Index at its lowest level since the index was created according to Sherwood News. Large liquidations in Bitcoin and Ethereum have contributed to this environment, but the recent short squeeze and technical exhaustion have provided some short-term relief as reported.

Chainlink's price is currently testing key support levels. A strong rebound from $8.97 would be necessary for any accumulation signal on long-term timeframes according to technical analysis. If this level is breached, the downside risks increase significantly as technical analysis indicates.

For now, the market remains in late distribution phase, with MACD on the weekly chart showing a negative trend according to technical analysis. Investors are advised to monitor volume profile shifts and MACD histogram movements for key decision points as technical analysis shows.