Chainlink has advanced significantly following a mid-August breakout, surging approximately 95% from around $7 to a recent high of $13.77 over two months. However, several technical and on-chain indicators suggest the rally may be facing near-term pressure.
Technical and On-Chain Concerns
A TD Sequential sell signal has emerged on LINK's weekly chart following the sharp price climb, raising the possibility of profit-taking. Large holder activity has notably declined, with transactions worth more than $1 million dropping from approximately 59 over a two-week period to about 10 as of September 7th.
Exchange deposit activity adds to these concerns. Approximately 1.75 million LINK moved onto exchanges, while total exchange balances rose from 269.25 million to around 271 million units. This combination of developments could signal a slowdown following LINK's strong advance.
Despite near-term headwinds, the broader technical setup remains constructive. LINK has closed above the $10.87 higher-timeframe level, which analysts note maintains a bullish outlook as long as that support holds.
Institutional Expansion
Chainlink has been added to Charles Schwab's crypto trading service, alongside Solana and Avalanche. This expansion provides eligible Schwab clients direct access to the token. Charles Schwab initially launched its crypto trading service with Bitcoin and Ethereum in May.
Wyoming has also adopted Chainlink's Proof of Reserve technology to provide near-real-time on-chain visibility into reserves backing its official Frontier Stable Token (FRNT). The state moved FRNT to CCIP in August and implemented Chainlink's reserve verification system to enable continuous verification through independent checks combined with automated on-chain monitoring.
