Chainlink’s LINK token experienced a notable 14% surge this October 20, 2025. This bullish move occurred just after a previous 22% correction. The main catalyst, according to on-chain data, was a significant LINK whale accumulation. Large investors withdrew millions from the Binance platform.
The blockchain data shows a massive transaction. A total of 6.26 million LINK tokens, valued at $116 million, were withdrawn from the Binance exchange. These funds were strategically distributed among 30 new wallets. This type of movement drastically reduces the liquidity available for immediate sale. Markets interpreted this action as a strategic “buy the dip” move.
Chainlink’s rally does not appear to be coincidental. The network’s narrative is strengthening due to its crucial role in the ecosystem. Chainlink operates as a decentralized oracle network. This technology is vital, as it connects smart contracts with real-world data. Currently, its utility in the tokenization of Real-World Assets (RWA) and the provision of real-time data is generating strong institutional interest. Analysts emphasize that LINK’s strength lies in its practical utility, not speculation.
Can the Supply Squeeze Sustain the Bull Rally?
When large volumes of an asset leave exchanges, the liquid supply on the spot market decreases. This can lead to an increase in volatility. Continued accumulation by large players is seen as a sign of long-term confidence. However, it also introduces concentration risk. If these few actors decide to sell simultaneously, the price reversal could be swift and severe.
The recent LINK rally, driven by LINK whale accumulation, has changed the immediate landscape. The reduction of supply on exchanges is a key factor. Traders are now closely watching the next technical resistance levels. The immediate targets are set at the $55 and $79 zones. The sustainability of this rebound will depend on whether this accumulation trend continues.
