- Saudi Awwal Bank is using Chainlink to build regulated on-chain finance applications.
- LINK exchange reserves have fallen to multi-year lows, signaling accumulation.
- LINK’s price has held $23 support but faces strong resistance near the $25 level.
Chainlink’s LINK token remains anchored near $23 as partnerships expand and exchange balances drop to their lowest levels in years.
The mix of institutional adoption, a push into artificial intelligence (AI) infrastructure, and tightening token supply has set the stage for a potential breakout, even as traders remain cautious at key resistance levels.
Saudi Awwal Bank partners with Chainlink on blockchain finance
Saudi Awwal Bank, one of the kingdom’s largest banks with more than $100 billion in assets, has signed an agreement with Chainlink to begin building regulated on-chain finance applications.
Developers at the bank will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Chainlink Runtime Environment (CRE) to create tokenized applications that connect Saudi markets to global blockchain networks.
The partnership aligns with Crown Prince Mohammed bin Salman’s Vision 2030, which aims to diversify the economy beyond oil revenues.
By working with Chainlink, the bank opens a path for tokenized capital markets—an industry valued at over $2.3 trillion in Saudi Arabia. This move could accelerate adoption of regulated blockchain infrastructure in the region and position Chainlink at the center of institutional finance across the Middle East.
Chainlink’s institutional push expands into AI
The Saudi agreement follows another strategic move for Chainlink. On September 16, Chainlink announced it had joined AethirCloud’s AI Unbundled Alliance, a program designed to advance Web3 AI infrastructure.
Through this initiative, Chainlink will provide its CRE platform to developers building AI-driven decentralized applications, while also supporting hackathon prizes and targeted grants.
Joining the alliance broadens Chainlink’s role from powering decentralized finance (DeFi) to enabling verifiable AI workflows across both blockchain and traditional systems. This expansion enhances Chainlink’s appeal and positions LINK as critical infrastructure for the next phase of Web3 adoption.
Shrinking LINK reserves point to accumulation
While headlines about adoption are encouraging, on-chain data may offer a clearer signal.
The amount of LINK held on centralized exchanges has dropped from nearly 200 million in 2023 to about 158.1 million as of September 2025.
This steady decline reflects accumulation by long-term holders and reduces the supply available for immediate selling. In past cycles, sharp declines in exchange reserves have often preceded major rallies.
Combined with growing institutional partnerships, this trend strengthens the bullish case for LINK despite recent market hesitation. In particular, shrinking reserves indicate tightening liquidity that could fuel a price breakout if demand increases.
Price outlook points to potential breakout
The current combination of supply tightening, expanding institutional use cases, and Chainlink’s move into AI infrastructure creates a constructive backdrop for LINK.
Short-term sentiment remains cautious, but the longer-term setup favors growth as demand converges with reduced token availability.
At the time of writing, LINK traded around $23.28 with a market capitalization near $15.79 billion, according to CoinGecko.
The token moved between $23.18 and $23.73 in the past 24 hours and has climbed more than 119% over the past year. However, it still trades about 55% below its all-time high of $52.70 set in May 2021.
Technical indicators suggest a consolidation phase as LINK holds support above $23. Bulls face strong resistance near $25; a decisive close above that level could open the door to $26.10 and higher.
Should adoption in Saudi Arabia accelerate and the AI alliance gain traction, traders believe Chainlink could overcome resistance and target higher levels, with some analysts identifying $52 as a potential milestone by year-end.
On the downside, a break below $23 would risk a decline toward $20 or even $19.53, which analysts view as an important support zone.