News

June 3, 2025

3 Key Reasons Why Chainlink May Rebound: Declining Supply, Whale Accumulation, and Price Harmonic Pattern

"Comprehensive chart depicting the decrease of LINK tokens on centralized exchanges versus the increase of whale-held Chainlink supply on a dark blue background, highlighted by an orange boost symbol, Chainlink logo in the center, and two sections outlining Chainlink partnerships and potential price breakout with upward pointing midnight blue arrows; a significant indication of Chainlink's bullish outlook."

Over the past few days, Chainlink, a notable player in the crypto market, experienced a significant price drop, reflecting the performances of Bitcoin and numerous altcoins. Chainlink’s value reached a $13.70 low on Monday, marking the lowest point since May 8th and a 23.75% drop from its high in May. Regardless of this downturn, there are three key reasons predicting that Chainlink’s price may bounce back in the coming month.

Depleting Centralized Exchange Supplies

Interestingly, the first bullish indication for Chainlink is due to the decreasing supply of LINK tokens held in centralized exchanges. Investors, preferring security, are transferring their tokens into self-custody wallets. Data collected by Santiment demonstrate a substantial drop in LINK tokens held in exchanges from 226 million in November 2023 to the current 192 million. This decline is a strong indication of growing investor confidence in Chainlink’s potential for long-term recovery.

Robust Fundamental and Strategic Partnerships

Moreover, Chainlink’s strong fundamental is another reason for investor optimism. Previous successes have seen Chainlink secure strategic partnerships with various high-profile institutions, including JPMorgan, ANZ Bank, UBS, Coinbase, Swift, and Solv Protocol. These companies have acknowledged Chainlink’s potential and are exploring ways to integrate Chainlink’s technology within the field of real-world asset tokenization. Chainlink’s Cross-Chain Interoperability Protocol has gained attention as a leading infrastructure tool for facilitating communication among different blockchain networks.

Besides, Chainlink is currently the dominant force within the realm of decentralized oracle space, securing more than $43 billion in assets across DeFi protocols. It’s closest competitor, Chronicle, secures only $7.4 billion in total value, a clear testament to Chainlink’s dominating strength.

Decrease in Whale Selling Activity

An uptime in Chainlink’s story is the recent slowdown in whale selling. As per the last check, the whale-held supply stands at 566.67 million tokens, a considerable uptick from 565.9 million last week. If this accumulation continues unchecked, it could spell the end of the selling trend that began in March and be regarded as a potential bullish signal. During this time, whale holdings touched a staggering 612 million coins high. An increase in whale accumulation would serve as a strong endorsement for Chainlink’s performance.

Increased Network Activity

Apropos growth, Chainlink’s network activity is gaining momentum with an apparent rise in the number of daily active addresses, further supporting a bullish prediction for LINK.

Chainlink’s Bullish Harmonic Pattern

From a technical perspective, Chainlink might be preparing for a significant price breakout according to a harmonic pattern emerging on its weekly chart. The XABCD pattern, a widely-accepted bullish continuation pattern, seems to be in motion.

  • The XA leg unfolded between March 2024 and July 2023.
  • The AB correction followed suit, running from July to November.
  • The BC leg stretched from November to April 2025.

If the pattern projections hold, the CD leg is already in development, which could propel LINK to mimic its November high of $30.92. This surge would signify a 125% rise from contemporary values.

James Carter

Financial Analyst & Content Creator | Expert in Cryptocurrency & Forex Education

James Carter is an experienced financial analyst, crypto educator, and content creator with expertise in crypto, forex, and financial literacy. Over the past decade, he has built a multifaceted career in market analysis, community education, and content strategy. At AltSignals.io, James leads content creation for English-speaking audiences, developing articles, webinars, and guides that simplify complex market trends and trading strategies. Known for his ability to make technical finance topics accessible, he empowers both new and seasoned investors to make informed decisions in the ever-evolving world of digital finance.

Latest posts by James Carter

Latest posts from the category News