Chainlink Price Eyes Rebound as Whale Interest Rises and LINK ETF Hits $50M

Chainlink (LINK) has settled around the $14 support level after the recent crypto rally slowed down. Despite market uncertainty, LINK shows signs of strength, suggesting it could bounce back soon. Factors such as bullish chart formations, ETF inflows, and decreasing exchange supply point to a possible upward move.

Technical Signals Point to Recovery

Chainlink’s daily chart shows multiple bullish signals that could support further gains. LINK formed a double bottom at $11.56, with a neckline around $13.50. In technical analysis, this pattern is often seen as a strong indication of a trend reversal.

Also, a falling wedge has formed for LINK, shown by two downward trendlines coming together. The price moving above the top line supports a positive view, as it usually means selling is easing and buying is increasing.

The token is also close to a crossover between the Supertrend indicator and the 50-day moving average, which may confirm upward momentum. At $14.09, LINK has risen around 2.36% in 24 hours. If gains continue, the next target could be $20, a 45% rise. A fall below $11.56 could challenge this scenario.

These technical signals suggest that LINK’s recovery is feasible, though the market remains sensitive to wider crypto trends. Investors are likely to monitor the $14 support closely, as it may shape the token’s movement in the coming weeks.

LINK ETF Nears $50 Million Milestone

Optimism for Chainlink has been boosted by the spot LINK ETF. Since its launch, the ETF has received steady inflows of over $48 million, pushing assets under management above $70.6 million. This is about 0.75% of Chainlink’s market capitalization, a share that could grow as the ETF targets levels similar to Bitcoin and Ethereum ETFs.

Such growth shows increasing institutional confidence. Unlike retail investors, institutions often take a long-term approach, which can stabilize the market. LINK’s ETF growth also matches other positive trends, supporting potential price gains.

Analysts emphasize that ETF demand can affect liquidity and trading dynamics. Strong demand can reduce token supply on exchanges, which may push prices higher, especially when technical indicators are strong.

The interplay between ETF inflows and technical strength makes a persuasive case for LINK bulls. As more institutions and traders get involved, the token’s trading environment could shift noticeably in the coming months.

The Impact of Whale Accumulation

A significant factor supporting LINK’s upside is the decline in tokens available on exchanges. Supply has dropped to 218 million from 264 million in November. This reduction, along with rising demand, can create favorable conditions for price growth.

Whale activity adds to this momentum. Large holders now possess 3.56 million LINK tokens, up from 1.73 million a few months ago. This accumulation indicates strong confidence among high-net-worth investors in the token’s prospects.

The Chainlink team is also helping through Strategic LINK Reserves. Since August, reserves grew to about 1 million tokens, worth $14.7 million. These purchases, funded by network fees, support the token’s value.

What to Expect from LINK?

The combination of Chainlink’s technical strength, institutional backing, and lower exchange supply may set the stage for a recovery. Current trends indicate that LINK may be approaching a bullish phase. Still, key levels at $14 support and $20 resistance remain crucial, along with ETF inflows and activity from large holders.