What happened?
Since the October 10 crash Chainlink fell from around $22 to about $17 and has mostly stayed there. CryptoQuant data shows exchange reserves plunged to multi-year lows as large amounts of LINK were withdrawn to cold wallets or staking. Netflow metrics have been negative most days, meaning more LINK is leaving exchanges than coming in.
Who does this affect?
Short-term traders may face tighter liquidity and bigger price swings because less LINK is available on exchanges. Long-term holders and institutional accumulators could benefit from reduced selling pressure as coins move off-exchange into cold storage or staking. Exchanges lose inventory, and traders chasing higher risk-reward plays may rotate into memecoins like Maxi Doge, shifting market dynamics.
Why does this matter?
Lower exchange supply can create a supply shock that pushes prices higher if buyer demand returns, turning current accumulation into a bullish catalyst. That makes near-term resistance zones around $19–$20 critical, while a clean breakout above $25 could accelerate a move toward $30 by year-end. At the same time, whale rotations into memecoins increase overall market volatility, so price moves could be sharp in either direction.