Chainlink Lost 20.8% in October Amid Token Outflows from Exchanges

Chainlink (LINK) has been experiencing token outflows from Binance for 18 consecutive days, yet the price does not follow this signal: LINK has decreased by 20.8 percent in October.

Analyst MorenoDV_ cited patient accumulation as one possible explanation: sustained outflows leave less LINK on the exchange. However, the series began after a net inflow of approximately 8.7 million LINK to Binance. According to the analyst, the outflows may partially reflect the redistribution of this deposit and cannot be read as proof of purchases. "Sustained negative net flows indicate reduced token availability, but the price continues to fall, showing that this supply shift has not yet turned into a sustainable buying force," the publication states. According to CryptoQuant, LINK reserves on all exchanges have decreased to 124.2 million tokens – almost to the level before the deposit.

Chainlink spot funds in the US recorded zero net flows for eight consecutive trading days, according to SoSoValue. The last movement was an outflow of about $397,000 on October 16, with the largest inflow in October being $9.48 million on October 9. Aggregate net assets decreased to $209.5 million on October 28 from $249.4 million on September 28.

LINK reserves grew and depleted in April and June, with the rally after the June episode accompanied by external catalysts. In August, Standard Chartered set a target of $200 by 2030, and at the end of September, the CCIP 2.0 update was released, pushing LINK above $15. Without a similar catalyst, the calendar offers little help: the median return for November is minus 10.5 percent, according to CryptoRank.

At a price of $11.34, resistance at $12.30 is the upper barrier, according to Crypto Tice. Support is at $10.87, where Crypto Patel recorded a confirmed bullish reversal. Further, CryptoBullet's buying zone is from $9.50 to $10.50, and Patel's re-entry zone is from $9.45 to $8.00. A constructive signal will occur with continued outflows, stable price, and stronger spot demand; at new lows, the divergence will remain an early supply signal.