Why are LINK exchange balances dropping while retail sentiment is bearish?

[tradelikepro]

On-chain data shows a structural divergence between retail and institutional behavior.
Retail traders often sell during sideways accumulation, while whales and smart money quietly move LINK off exchanges to cold storage or staking.
The drop in exchange balances suggests accumulation, not distribution — meaning circulating liquidity shrinks, priming LINK for volatility expansion when demand returns.
It mirrors 2020–2021 ETH pre-run dynamics before EIP-1559 and staking unlocked.

[Nahid Hossen]

Falling exchange supply usually signals accumulation, not fear. Smart money moves silently. 🧩

[Rimon Khan]

Bearish retail + dropping supply often sets the stage for a surprise move. ️