Chainlink recorded 1.26 million tokens in net exchange outflows over 24 hours. This was the largest daily outflow since June 29.

Santiment said the drop in exchange supply means fewer LINK tokens are available for quick sell orders, which could potentially lower future sell-off risk.

Bullish Signals

The timing of the move is interesting, according to Santiment. In July, the DTCC processed tokenized US securities trades with Chainlink listed among its technology providers. Meanwhile, its Cross-Chain Interoperability Protocol (CCIP) expanded support across institutional and crypto networks, including Canton and Robinhood Chain. Santiment believes that these developments could be positive for patient LINK bulls.

The crypto asset started July near $7.85 and briefly slipped below $7.6 before recovering. The price then climbed higher and even broke above $8, eventually reaching around $8.86. However, the rally did not hold, and by August LINK pulled back toward $8.2.

Against this backdrop, whale activity around Chainlink has picked up significantly, which essentially reflected stronger confidence among major holders. The network also ranked second in Santiment’s RWA development ranking, behind Hedera, after showing improved activity compared with the previous month.

Pseudonymous market watcher, ‘The Boss,’ said the crypto asset is now testing whether it can break out of the downtrend that has controlled its price for weeks. It has held a long-term demand zone while challenging a descending trendline that has repeatedly rejected price. According to the trader, the structure has strengthened, but confirmation is still needed. A break above the first resistance of $11.62 could mark LINK’s greatest technical recovery since the decline began.

The focus is now on whether buyers can form higher highs and higher lows while staying above the demand zone. If that structure fails, the asset could remain trapped inside the broader bearish trend.

CCIP Adoption

Zooming out, Chainlink is also seeing wider adoption across its ecosystem. Dozens of projects have switched to its technology in recent months. These include Kraken’s kBTC, along with Solv Protocol’s SolvBTC and xSolvBTC.

BitGo also announced moving its cross-chain infrastructure to Chainlink’s CCIP. The move comes as more projects shift away from LayerZero following the $292 million KelpDAO bridge exploit earlier this year.

Source: CryptoPotato