Crypto: Chainlink Plunges 21% Despite Massive Withdrawals, Raising Concerns

Chainlink (LINK) loses 20.8% since early October despite a decrease in reserves on crypto platforms. Binance records 18 consecutive days of net token outflows, while reserves tracked by CryptoQuant have dropped to 124.2 million LINK. Usually considered bullish, this movement does not produce any sustained rebound. US Chainlink ETFs also show signs of slowing down.

Chainlink loses 21% despite crypto withdrawals on Binance

On-chain data shows an unusual situation. For 18 days, more LINK have left Binance than arrived. Investors often interpret these withdrawals as a sign of accumulation, especially when tokens are transferred to private wallets.

The decrease in reserves is not new. In August 2025, 33 million LINK had already left exchange reserves, which dropped from 180 to 147 million tokens. This time, the figures do not accompany an increase. According to CryptoRank, the Chainlink crypto shows a loss of 20.8% since the beginning of the month. In a reading taken on October 29 around 11:40 UTC, LINK traded around 11.58 dollars on Binance, after a low of 11.29 dollars in the last 24 hours.

Analyst MorenoDV_ however calls for caution. Before this withdrawal streak, Binance had recorded a net inflow of about 8.7 million LINK. Part of the subsequent outflows could thus correspond to a redistribution of these tokens to other wallets.

In other words, the transfers do not prove that new investors are accumulating LINK. Aggregate reserves tracked by CryptoQuant have returned to 124.2 million tokens, a level close to that observed before significant inflows on Binance. The market still lacks buyers capable of sustainably reversing the decline.

LINK ETFs lose 40 million $ in net assets

US investment products do not offset this weakness. According to SoSoValue, spot Chainlink ETFs have recorded eight consecutive sessions without net inflows or outflows. Their last movement dates back to October 16, with a withdrawal of around 397,000 dollars.

On October 9, these funds had attracted 9.48 million dollars in a single session. Since then, flows have stopped. Their total net assets fell from 249.4 million dollars on September 28 to 209.5 million on October 28. This represents a decline of 39.9 million dollars, or about 16%.

Beware not to confuse the two indicators. This valuation drop does not mean investors have withdrawn 39.9 million dollars. The drop in LINK also reduces the value of tokens already held by the funds.

This distinction had already been noted regarding the Grayscale Chainlink ETF, whose assets declined with the fall of LINK. October’s situation presents an additional challenge: funds no longer record new net inflows. Even when reserves available on exchanges decrease, the price can continue to fall if demand remains insufficient.

Chainlink’s advances do not yet support the price

The crypto project continues its technological development. On September 28, Chainlink launched CCIP 2.0, a new version of its interoperability protocol between blockchains. It notably brings additional verification mechanisms, compliance controls, and more flexibility in executing transfers.

Another recent announcement: on October 27, Further Asset Management, a company based in Abu Dhabi, announced the adoption of the Chainlink ACE compliance engine for its Anubis platform. The tool aims to verify certain regulatory conditions before executing transactions involving tokenized assets. Its initial deployment concerns the Abu Dhabi Global Market.

This partnership is a commercial advance announced without yet proof of a direct effect on LINK demand. Chainlink had several catalysts at the beginning of the month. The project was among the five cryptos to watch in October 2026, notably thanks to CCIP 2.0 and its ambitions in tokenized finance.

On the market, analysts now monitor resistance at 12.30 dollars and support at 10.87 dollars. Another area of interest lies between 9.50 and 10.50 dollars. These are technical levels proposed by analysts, not guaranteed prices.

For Chainlink, withdrawals on Binance are data to watch, not proof of a reversal. The next sessions will show if buyers really return, both on the spot market and in ETFs.