Chainlink crypto, $LINK, has performed well in the last 7 days, gaining 21.8% to briefly take back the $26.75 price mark before falling to $25.55 as a factor of declining exchange supply and increased wallet activity.
Currently, the market capitalization of Chainlink crypto stands at $16.3 Billion. Its fully diluted valuation (FDV) was at $25.54 Billion as of press time.
Declining Exchange Supply Reflects Bullish Holding Behavior
The depleting supply of Chainlink on exchanges is one of its strongest indicators of upward momentum.
As of this past month, the volume of LINK held on exchanges was down 0.95%, indicating a decreasing sell-side pressure.
That usually means when tokens are moved off exchanges and enter private wallets, holders are less likely to sell and more likely to hold for the long term.
Such behavior pushes away the available amount in the short-term market, which creates a bullish atmosphere.
Historically, a declining exchange supply has led to price appreciation, and LINK’s price rally is another such case.
The more investors choose to self-custody, the more confidence there is in the asset’s future potential. The fault of less sell-side liquidity and bringing more demand creates a favorable situation for price growth.
Sides other than MDIA that fuel Chainlink’s bullish case include a reduction in its mean dollar invested age. On average, the LINK token in these wallets became 6.3% younger over the last month.
The change in this chart is indicative of increased wallet activity since it is also often seen as a signal that either fresh capital is entering the ecosystem or existing participants are repositioning their holdings.

MDIA tends to coincide with relatively young MDIA, which is often associated with steep periods of return volatilities and a time when many players come back into the arena for the first time.
An increasingly younger Wallet suggests tokens are moving somewhere (whether via purchases, as a transfer, or via staking).
In the case of Chainlink, this picked-up activity validates the thesis of rising demand and accumulation, not apathetic holding.
Combined with the reduced exchange supply, this suggests a bull investor base poised for long-term price run-up.
Technical Analysis: Chainlink Crypto in a Bullish Channel
On the 4-hour candlestick chart, Chainlink crypto price action looks very defined. It has held within a well-defined bullish channel since early-mid January.
After pulling back from a key support level at $17 earlier this month, LINK has continued to trend higher, breaking key resistance levels along the way to a high of $26.75 before correcting somewhat.
The green channel on the chart clearly showed this, showing how strong the rally was.

The Awesome Oscillator (AO) indicator at the bottom of the chart confirms this positive trend. The AO currently interprets a slight reduction of bullish momentum; however, the structure has not been altered. While LINK is inside this ascending channel, it still has the potential to break higher.
Resistance-wise, $26.75 should be broken soon. Because of this, a decisive break above this level could set the stage for a rally up to the psychologically significant $30 level.
On the other hand, immediate support also lies at around $25.00, with the possibility of retesting the lower trendline of the channel at around $23 should the price move lower.
These levels will mark the key points in LINK’s near-term price action.