Chainlink Eyes Rebound as LINK ETF Approaches $50M Milestone Amid Whale Accumulation

Source: CryptoNewsNet Original Title: Chainlink price eyes rebound as LINK ETF nears $50m milestone as whales buy Original Link:

Chainlink Price Analysis

Chainlink price has stabilized around the $14 support level as the crypto market rally faded. The token has formed a highly bullish chart pattern as ETF inflows surge and exchange supply continues to decline.

Bullish Technical Signals

The daily timeframe chart shows that Chainlink (LINK) has formed several highly bullish chart patterns. It formed a double-bottom pattern at $11.56 with a neckline at $13.50. A double-bottom is one of the most common bullish reversal patterns in technical analysis.

Chainlink has also formed a giant falling wedge pattern, composed of two descending and converging trendlines. The token has already moved above the upper side of the wedge pattern and is about to break above the Supertrend indicator, signaling that a bullish breakout is underway. It is also approaching the 50-day moving average.

Based on technical analysis, the token will likely continue rising as bulls target the next key resistance level at $20, representing a 45% gain from current levels. A drop below the key support at $11.56 would invalidate the bullish outlook.

ETF Inflows Drive Momentum

The main catalyst for Chainlink’s price is strong reception of the spot LINK ETF by market participants. The fund has recorded inflows on every day since launch and has accumulated over $48 million in assets, bringing total assets under management to over $70.6 million, representing 0.75% of LINK’s market capitalization.

This suggests significant room for growth as the ETF targets the 5% market share that Bitcoin and Ethereum ETFs have achieved.

Declining Exchange Supply and Whale Accumulation

Exchange supply data reveals a positive trend, with LINK supply on exchanges falling to 218 million tokens, down from a November high of 264 million. This declining supply on exchanges indicates reduced selling pressure.

Meanwhile, large holders continue accumulating tokens. Whale holdings have surged to 3.56 million tokens, up from 1.73 million in November, signaling strong institutional demand.

The Chainlink team is also accumulating tokens through the Strategic LINK Reserves program. These reserves have reached 1 million tokens, worth approximately $14.7 million, just months after the program’s launch. The team began accumulating in August, channeling network fees into these purchases.