**Chainlink (LINK) Exchange Reserves Fall as Price Holds Near Key Support, Setting Stage for Potential Recovery**
Chainlink (LINK) exchange reserves have declined by 34 million tokens since early 2025, signaling a tightening supply as investors move assets off exchanges. Currently trading near $16.06, LINK is positioned close to a key support zone within a falling price channel, hinting at possible stabilization ahead.
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### Technical Setup Indicates Price Compression Near Support Levels
LINK has been trading within a descending channel since mid-September, with the price now approaching the lower boundary of this range. This pattern reflects diminished momentum from both buyers and sellers, causing price compression and a narrowing trading range.
The $15.40 to $14.00 zone has consistently served as an accumulation area where large holders and long-term investors build positions, absorbing short-term sell-offs. Such activity suggests that traders may be preparing for a shift in market direction.
Supporting this outlook, the Money Flow Index (MFI) currently sits at 45.79, indicating that capital inflows may be stabilizing after a period of decline. Historically, MFI levels near this range suggest buying interest is poised to increase.
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### Potential Breakout Levels Point Toward Recovery
A decisive breakout above the $18 resistance level could spark a gradual ascent toward $20, a price point that has proven to be a strong barrier in previous rallies. Should LINK sustain gains beyond $20, attention turns to the $23.50 mark, a key area identified on the 4-hour chart as critical for further momentum.
Surpassing $23.50 may propel LINK toward $25, with analysts projecting that continued bullish pressure could drive the token as high as $30 by the end of Q4 2025. This would represent an approximately 86% increase from current price levels.
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### FTSE Russell Partnership Expands Chainlink’s Institutional Reach
A recent partnership between Chainlink and global index provider FTSE Russell is poised to deepen Chainlink’s integration into traditional finance. FTSE Russell will publish global indices on-chain using Chainlink’s DataLink technology, delivering verified financial data in a decentralized format.
This collaboration enhances transparency and efficiency in data delivery to smart contracts, facilitating greater adoption among institutional players. By bridging off-chain financial infrastructure with on-chain applications, Chainlink strengthens its position as a critical oracle solution for real-world data sharing.
Market observers view this development as a significant milestone likely to attract more data providers and financial institutions to the Chainlink ecosystem.
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### Declining Exchange Reserves Reflect Growing Holder Confidence
Data from CryptoQuant reveals that LINK tokens held on exchanges have dropped from over 180 million to roughly 146 million since early 2025. This 34 million token reduction suggests increasing movement of assets into long-term storage or staking, which typically eases selling pressure and supports price stability.
CoinGlass data corroborates this trend, showing ongoing accumulation across various wallets. Investors appear to be positioning themselves in anticipation of a potential breakout, reflecting patterns observed in previous pre-uptrend phases.
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### Conclusion
With exchange reserves falling and LINK trading near key support levels within a falling channel, technical indicators combined with fundamental developments point toward a possible price recovery. The strategic partnership with FTSE Russell and growing institutional interest may further amplify demand as supply tightens.
As the final quarter of 2025 unfolds, market participants will be watching closely to see if LINK can break free from its current consolidation and capitalize on the potential for substantial gains ahead.
https://coincentral.com/chainlink-price-targets-30-as-ftse-deal-and-supply-drop-drive-hope/