Chainlink (LINK) could increase by 30% if this trend continues.

The price of Chainlink (LINK) is stabilizing around $23 after a 6% increase in the last 24 hours, raising the 7-day increase to 46%. This surge stands out against the backdrop of many other coins moving sideways.

At the same time, on-chain data shows that a large amount of LINK tokens has left exchanges in just two days. This move could be the "spark" for a larger breakout.

Retail demand increases as tokens leave the exchange

Data from analyst Ali shows that 2 million LINK, worth over 46 million dollars, has been withdrawn from exchanges in the past 48 hours.

Source: AliThis is noteworthy because a lower number of tokens on the exchange usually means reduced selling pressure. Sellers must send coin back to the exchange before they can sell.

Historically, large withdrawals of LINK often occur before the price rises. Meanwhile, the number of wallets holding LINK also remains stable.

This indicates that retail traders are not leaving the market despite the recent strong price increase. When demand remains unchanged while liquidity decreases, the scarcity of supply may drive prices up.

In addition, strong withdrawal lines often reflect the confidence of holders. Looking at the bigger picture, whales may be preparing for higher price levels, while retail traders continue to accumulate coins as prices adjust.

Combined, these factors create a premise for a potential breakout, as long as the technical signals support it.

Buying volume and fundamental factors paint a positive picture

On-Balance Volume indicator (OBV – monitors the flow of trading volume in or out ) is currently maintaining near the level of 1.02 billion.

This model shows that the buying volume on days when prices rise is still superior to the selling volume on days when prices adjust.

OBV Indicator | Source: TradingViewAlthough OBV has not surged to an extreme level, this index has shown strong and healthy accumulation pressure. The higher peak pattern here reflects the price increase of Chainlink driven by spot trading, rather than just market sentiment.

Another positive factor is that the Total Value Locked (TVS) of Chainlink in the DeFi space has now surpassed 93 billion dollars, according to data from DeFiLlama.

Source: ChainlinkTVS measures the total value of assets secured by Chainlink's services, and the higher this number, the greater the increasing adoption in lending, trading, and derivatives protocols.

TVS increases often reflect strong demand for the network, which can help sustain price rallies.

If OBV sets a new peak while TVS continues to rise, this could provide additional momentum for the upward trend. Combined with the low amount of tokens on the exchange, this will be a solid foundation both fundamentally and in terms of on-chain data for the next upward move.

Important breakout zone for the price of LINK?

Currently, the price of LINK is trading in an ascending channel, with a clear resistance level at $24.86 – the Fibonacci level 1.0.

If this area is broken, the price could pave the way towards 29–30 dollars. This coincides with Fibonacci levels 1.272–1.618 and forecasts from Ali, equivalent to an increase of about 30% compared to the current level.

Source: AliThe liquidation map shows that there are many clusters of Short positions concentrated above the $24 level. This means that a clear breakout could trigger forced buying from Short Sellers, thereby accelerating the upward momentum. Such movement is called a Short Squeeze.

Source: TradingViewHowever, if it cannot break through the resistance level, LINK may return to the support area of 21.5–21 dollars. And if this area also fails, the level of 17 dollars could even occur.

Liquidation map of Chainlink | Source: CoinglassCurrently, the risk–reward ratio of the market is at a favorable level.

Factors such as the token withdrawal volume from the exchange, high TVS, and solid OBV indicate that if the level of $24.86 is broken, the door to $29–30 will be wide open.

However, as usual, traders should closely monitor the important price levels of LINK. If the support area is broken, the bullish scenario may take longer to form.

Minh Anh