Chainlink Supply Plunge Sparks Bullish Case Toward $100
Chainlink supply plunge on exchanges hit a record low this August, driven by heavy whale outflows and long-term accumulation. CryptoQuant data shows net outflows of approximately 239,000 LINK, with a single-day withdrawal exceeding one million tokens between August 1 and 7. Reduced exchange supply often translates to lower sell pressure, supporting LINK’s rally from $16 to over $25 earlier this month.
After peaking near $26, LINK retraced to around $23 amid a broader market pullback. On-chain analysts note a symmetrical triangle forming, suggesting a short dip toward $22–$24 before a potential breakout. Fibonacci projections mark upside targets at $31, $52, and ultimately $98–$100 if current support holds.
Adding to bullish sentiment, Chainlink announced a partnership with SBI Holdings to integrate its oracle technology into Japanese financial applications. This collaboration could boost network usage and further reduce circulating LINK supply. Together, the supply plunge and the SBI partnership point to mounting bullish momentum and raise the viability of a $100 price target for LINK.
Bullish
The sharp decline in Chainlink’s exchange supply signals strong accumulation and reduced selling pressure, a classic bullish indicator. Historical events, such as Bitcoin’s 2020 halving and LINK’s 2021 whale outflows, show that significant token withdrawals often precede sustained rallies. Ongoing net outflows of 239,000 LINK and large single-day withdrawals underscore renewed holder confidence and long-term staking interest.
Technically, LINK’s formation of a symmetrical triangle and Fibonacci targets ranging up to $100 provide clear breakout scenarios. The recent SBI partnership adds fundamental support by expanding Chainlink’s real-world use cases in Japan, boosting demand for LINK tokens. In the short term, traders may see a dip toward $22–$24 as a buy opportunity, while in the long term, reduced exchange inventories and growing on-chain activity increase the likelihood of a multi-fold price advance. Overall, the convergence of on-chain supply metrics and strategic partnerships strengthens the bullish outlook for LINK.