Chainlink (LINK) reserve activity continues to grow quietly despite current market weakness. The latest update shows 92,946.23 LINK added, bringing the total reserves to 1,232,139.92 LINK.
This accumulation occurred while LINK was trading near $12.22, at press time, close to a multi-week demand zone.
This timing carries weight. Reserves increased during the decline, not during the upward momentum. This behavior reflects long-term conviction rather than reactive positioning.
Over time, growth of reserves reduces stress related to circulating liquidity and strengthens the defensive layer of the network. Reserves rarely trigger instant rallies. Instead, they influence how price responds once demand returns.
As a result, although price action remains under pressure, the underlying network structure continues to improve, a divergence often seen as late corrective phases approach.
Spot buyers continue to absorb selling pressure
The behavior of the spot market reinforces the idea that selling pressure lacks strong organic conviction.
The 90-day CVD Spot Taker remains clearly dominant in buying, confirming that market buying continues to outpace market selling, even as LINK has slipped from the $16-$17 range all the way to $12.
Buyers are actively lifting offers rather than waiting for larger pullbacks. At the same time, derivatives activity distorts price signals, masking this underlying strength.
Forced selling from leveraged positions drives prices down despite constant one-time absorption. Yet the continued dominance of the buy-side points toward accumulation rather than distribution.
Under these conditions, downward movements generally lose momentum as prices move closer to demand zones.
Source: CryptoQuant
Leverage is reset as long liquidations dominate
Liquidation data confirms that forced positioning was behind much of LINK’s recent decline. At the time of writing, total liquidations reached around $213,000, with short liquidations near $167.24,000 and long liquidations around $46.03,000.
Binance alone saw over $17,000 in short liquidations, while Bybit accounted for around $124,000. These numbers highlight aggressive leverage resets rather than renewed bearish conviction.
Repeated long flushes regularly reduce fuel loss. As long positions disappear, cascading sales become more difficult to maintain. At the same time, increasing short exposure increases vulnerability to sharp countermoves.
In this environment, liquidation behavior increasingly reflects the exhaustion rather than the expansion of a new trend.
Source: CoinGlass
Demand zone defense shapes recovery setup
LINK continues to hold a clearly defined demand zone between $11.8 and $12.2, where buyers have now repeatedly defended the price.
This area has repeatedly absorbed selling pressure, preventing any sustained break below $11.8.
It is important to note that at the time of writing, the RSI held at 40.81, with a signal line near 33.16, signaling that bearish momentum is weakening rather than accelerating. This RSI behavior often appears during base construction phases.
As long as the price remains above demand, the downside risk remains capped. However, LINK needs to recover $13.02 to confirm its short-term strength.
A decisive push above $14.65 would invalidate the lower-high pattern and expose $16.66 as the next major resistance. Therefore, sustained demand defense establishes a clear recovery trajectory towards the $16 region.
Source: TradingView
Chainlink Liquidity Clusters Point Price to Higher Levels
Binance’s 24-hour liquidation heat map highlights dense liquidity clusters between $12.6 and $13.2, with another notable concentration near $14.65.
These areas often act as short-term price magnets when forced liquidations are triggered. The bearish liquidity near $11.7 has already cleared, reducing the risk of immediate breakdown.
With leverage thinning and spot demand activity, upside sensitivity increases. If LINK recovers $13.02, the price could accelerate to $14.65 as short positions unwind.
Beyond this level, $16.66 is the next major resistance. Cash placement therefore aligns with a recovery trajectory rather than a prolonged squeeze.
Source: CoinGlass
In summary, Chainlink’s structure now reflects stabilization rather than continued deterioration. Reserve growth above 1.23 million LINK, regular spot purchases, and easing liquidation pressure indicate downward depletion.
As long as the price remains in the $11.8-$12.2 demand zone, the risk increases. A decisive recovery to $13.02 would likely unlock a move toward $14.65, placing $16 firmly in focus as the primary recovery target.
Final Thoughts
- Reserve accumulation and spot buying suggest downward exhaustion near the $12 demand zone.
- Crossing $13.02 could shift momentum towards $14.65 and reopen the $16 target.
