Chainlink Price Eyes $20 Surge as LINK ETF Nears $50M, Supply Shrinks
Chainlink price targets $20 after LINK ETF inflows hit $48M and exchange supply drops. Bullish patterns signal a major crypto rebound ahead.
Quick overview
- Chainlink (LINK) has stabilized around the $14 support level, showing signs of bullish momentum with a double-bottom pattern forming.
- The token has broken out of a falling wedge pattern and is nearing a breakout above key indicators, suggesting a potential rally.
- Growing popularity of LINK ETFs has driven optimism, with assets under management exceeding $48 million and strong institutional demand.
- Supply trends indicate a reduction in exchange-listed LINK and increased accumulation by whale investors, supporting a bullish outlook.
Chainlink (LINK) has stabilized near the $13.5 support level after a broader crypto market rally slowed. Technical indicators suggest a bullish momentum is building. LINK has formed a double-bottom pattern at $11.56, with a neckline at $13.50—a classic sign of a potential trend reversal.
The token has also broken out of a giant falling wedge pattern, marked by two converging downward trendlines. On top of that, LINK is approaching a breakout above its Supertrend indicator and the 50-day moving average, reinforcing the likelihood of a continued rally.
Analysts now expect the next major resistance around $20, representing a 45% gain from current levels. However, a decline below $11.56 would invalidate this bullish outlook.
LINK ETF Inflows Fuel Market Optimism
The growing popularity of LINK ETFs is a key driver behind the token’s upward trend. According to SoSoValue data:
- The spot LINK ETF has recorded daily inflows since its launch.
- Assets under management (AUM) now exceed $48 million, contributing to a total fund value of $70.6 million—about 0.75% of LINK’s market capitalization.
- These ETFs could eventually reach 5% of market cap, similar to Bitcoin and Ethereum ETFs.
Strong institutional demand has not only provided liquidity but also signaled confidence in LINK’s long-term prospects, encouraging bullish sentiment among traders and investors alike.
Shrinking Supply and Whale Accumulation
Supply trends further support LINK’s bullish case. Exchange-listed LINK has dropped from 264 million tokens in November to 218 million, reducing immediate selling pressure. Meanwhile, whale investors continue to accumulate LINK, increasing holdings from 1.73 million to 3.56 million tokens.
Additional accumulation comes from Chainlink’s Strategic LINK Reserves:
- The team has amassed 1 million tokens, valued at around $14.7 million, since August.
- These purchases are funded by network fees, signaling long-term confidence and a commitment to supporting token value.
With technical indicators pointing upward, strong ETF inflows, and dwindling exchange supply, Chainlink appears poised for a significant rebound, potentially setting its sights on the $20 mark in the coming months.
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