Chainlink (LINK), the leading decentralized oracle network, appears poised for a potential breakout as investor sentiment strengthens and on-chain metrics turn bullish. The token was trading at $16 on Wednesday, reflecting a 60% gain from its 2025 lows, with continued momentum suggesting a move toward the key $20 resistance level.
Sustained Exchange Outflows Signal Accumulation
Data from CoinGlass shows a consistent pattern of negative netflows for LINK, indicating strong accumulation trends. Over $11.27 million worth of LINK has exited exchanges this week, following $55.2 million in outflows the week prior. The persistent decline in exchange balances, which has occurred weekly since June 2024, suggests investors are moving their assets to self-custody, reducing the available supply for sale.
Such sustained outflows often precede upward price action, as reduced exchange liquidity can amplify the impact of new demand.
Ecosystem Growth Drives Bullish Sentiment
Beyond token flows, Chainlink’s fundamental strength continues to grow. The network has cemented itself as a crucial player in the expanding real-world asset (RWA) tokenization and DeFi sectors. Notable milestones include:
- A cross-chain transaction facilitated between JPMorgan and Ondo Finance, showcasing Chainlink’s enterprise relevance.
- The launch of its Cross-Chain Interoperability Protocol (CCIP) on the Solana mainnet, unlocking over $18 billion in on-chain assets.
- Powering $1.16 billion of assets on Solv Protocol, a Bitcoin staking platform with over $2.5 billion in total value.
Analysts see Chainlink’s tech stack as pivotal in bridging blockchain and traditional finance, a vision further supported by its partnership with SWIFT, the global messaging network responsible for trillions in financial transfers.
Asset manager VanEck projects that the RWA market could reach $30 trillion by 2030, highlighting the immense potential for Chainlink to serve as the connective infrastructure across networks.
Technical Analysis: Bullish Patterns in Focus
On the daily chart, LINK has confirmed a double bottom formation at $10.20, seen in both November 2024 and April 2025. This pattern is traditionally a bullish reversal signal. In addition, LINK is currently trading within an ascending channel and remains above its 50-day weighted moving average, adding confidence to the upward momentum.
The next major resistance lies at $20, representing a 27% potential upside from current levels. However, a break below the lower bound of the ascending channel would challenge the bullish narrative.
Outlook: Strong Fundamentals, Bullish Momentum
With growing institutional relevance, consistent investor accumulation, and favorable technical signals, Chainlink is emerging as one of the strongest contenders for a sustained rally in the altcoin market. If momentum holds, the $20 mark could soon be in reach cementing LINK’s role in the next wave of crypto innovation.
