Chainlink Holds Above $15 as Bitwise ETF Listing Signals Institutional Momentum
Chainlink (LINK) is currently trading at $15.35, down 4.7% in the last 24 hours. This is despite the fact that there have been a lot of
Quick overview
- Chainlink (LINK) is currently trading at $15.35, down 4.7% in the last 24 hours despite positive news surrounding the decentralized oracle network.
- The addition of Bitwise's spot Chainlink ETF to the DTCC registry suggests potential approval, which could accelerate institutional crypto acceptance.
- Chainlink's Rewards Season 1 has launched, incentivizing staking and increasing on-chain activity, potentially leading to higher token burn rates.
- Technical analysis indicates that if LINK maintains support above $12.59, it could target $18.12, with bullish sentiment reflected in on-chain metrics and whale activity.
Chainlink LINK/USD is currently trading at $15.35, down 4.7% in the last 24 hours. This is despite the fact that there have been a lot of positive news stories regarding the decentralized oracle network. Last week, the cryptocurrency gained important support near the lower trendline of its falling wedge pattern. This led to an 11% rise before Tuesday’s drop.
DTCC Registry Appearance Suggests Imminent Spot Chainlink ETF Approval
Bitwise’s spot Chainlink ETF was added to the Depository Trust and Clearing Corporation’s register on Tuesday under the ticker CLNK. It was listed in both the “active” and “pre-launch” categories, which is a big step forward for institutional crypto acceptance. DTCC listings have historically been good signs that the Securities and Exchange Commission will approve something, but they don’t always mean that it will happen. The way things look, Bitwise’s Form S-1 registration from August is moving through the last stages of approval. However, the asset management has not yet filed the important Form 8-A document that usually comes before a launch.
The timing is right since the government has been shut down for 42 days, which has caused a huge backlog of crypto ETF applications that the SEC needs to analyze. But analysts think that approvals will speed up after the government ends this week and new generic listing rules go into effect on September 17. These rules do away with the need for case-by-case reviews, which could lead to a rush of cryptocurrency ETFs that follow assets from Solana to Dogecoin.
Chainlink Rewards Season 1 Strengthens Token Utility and Staking Incentives
Chainlink’s ecosystem got a big boost on Tuesday with the start of Rewards Season 1. This expanded its Build program through agreements with nine projects, such as Dolomite, Space and Time, and Folks Finance. From November 11 to December 9, LINK stakers who meet the requirements can earn token prizes by giving away non-transferable Cubes. The awards will begin to be distributed on December 16, following a 90-day linear unlock schedule.
This project focuses on a key portion of tokenomics by encouraging people to stake and increasing on-chain activity. This could lead to higher token burn rates and a smaller circulating supply. The rewards system creates a positive feedback loop in which greater staking rates make the network more secure while also making the supply tighter. This is a fundamentally optimistic dynamic for long-term price growth.
LINK/USD Technical Analysis: Recovery Rally Above Key Support Level
From a technical point of view, LINK’s respect for the bottom trendline of the falling wedge around $12.59 has kept the bullish pattern intact. The Relative Strength Index is around 40 on the daily chart, which is close to the neutral 50 level that would show that negative momentum is receding. The MACD indicator made a bullish crossover on Monday that is still in place, which is a big sign that the recovery advance will continue.
If the lower trendline support holds, technical analysts think LINK might reach the 50-day exponential moving average at $18.12, which would be around 18% higher than where it is now. If this resistance level is broken decisively, it could lead to the $20 psychological resistance level.
On-Chain Metrics and Whale Activity Signal Bullish Sentiment Shift
On-chain data from Santiment shows that Chainlink’s Social Dominance indicator rose from 0.15% on Saturday to 1.89% on Wednesday. This is the highest level since July 2022. This big rise in discussion share throughout cryptocurrency media shows that both retail and institutional investors are once again interested in the project.
CryptoQuant data backs up the optimistic thesis by revealing that whales are buying a lot of coins and that the purchase side is dominant in both the spot and futures markets. On Tuesday, Coinglass’s OI-Weighted Funding Rate turned positive at 0.0032%, which means that those who are long on the market are paying people who are short on the market. This is a clear sign that futures traders expect prices to go up.
Chainlink Price Prediction: Catalysts Support $18 Target
The combination of ETF approval momentum, better staking incentives, and a better technical structure all point to LINK being ready for a slow recovery bounce. The 50-day EMA at $18.12 is the first resistance level, according to conservative price projections. If purchasing pressure increases after formal ETF acceptance announcements, the barrier level might move up to $20.
But traders should keep a close eye on the $15 support zone. If the price drops below this level, it could go back to the pattern’s lower border near $12.59. However, current on-chain measures suggest that accumulation is still the major trend. The RSI’s position is getting close to neutral, which means the asset isn’t too overbought or oversold. This gives it room to move higher without worrying about extreme positioning.
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