The post Chainlink Price Nears a Critical Crossroad as Supply Builds Beneath the Surface appeared on BitcoinEthereumNews.com.

The post Chainlink Price Nears a Critical Crossroad as Supply Builds Beneath the Surface appeared first on Coinpedia Fintech News Chainlink price is losing momentum as traders turn more defensive across the altcoin market. After failing to hold above $11, LINK extended its pullback today over 6%, pushing price toward the $9 mark, a zone where buyers are now expected to show intent. The move lower has unfolded without panic. Instead, it reflects a gradual withdrawal of demand, with rebounds failing to attract sustained follow-through. This kind of price behavior often signals a market that is reassessing value rather than reacting emotionally. As LINK price approaches key technical territory, on-chain data offers insight into why confidence has thinned. Spot Market Data Shows Steady Distribution Into Weak Rallies Spot on-chain metrics point to persistent but controlled selling pressure rather than panic-driven exits. Over the past several sessions, LINK has recorded net exchange inflows averaging 2500,000–4000,000 LINK per day, even as price attempted minor recoveries. These inflows have coincided closely with short-term bounces, indicating that holders are using strength to distribute rather than accumulate. Exchange balances remain elevated relative to early-month levels, while spot volume on green candles has consistently lagged volume on red sessions.  This imbalance confirms that sell-side activity is absorbing demand faster than buyers are willing to step in. Crucially, there is no sign of aggressive accumulation clusters forming at current prices. Historically, LINK bottoms have aligned with sharp reductions in exchange inflows. Leverage Exposure Resets as Risk Appetite Pulls Back Derivatives data reinforces the idea that LINK’s move lower is driven by positioning reset, not aggressive bearish conviction. Open interest has declined near 2%, dropping from approximately $470 million to near $450 million, signaling that traders are reducing exposure rather than piling into shorts. This contraction reflects long-side…

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Filed under: News - @ February 2, 2026 10:29 am