Key Insights
- Chainlink price has rebounded in the past few days.
- Spot LINK ETFs have continued having substantial inflows this year.
- The supply of Chainlink tokens in exchanges has continued falling.
Chainlink price climbed for the second straight week. Ongoing ETF inflows and steady accumulation by investors and strategic reserves fueled the rise.
LINK token rose to $13.70 from the December low of $11.50. So, will the LINK price continue the recovery or resume the fourth quarter’s slide?
Chainlink’s Supply in Exchanges Falling as Accumulation Continues
Chainlink price has rebounded in the past few days as Bitcoin and most altcoins have bounced back. This rally is mostly because of the situation known as the January Effect. There, financial assets do well at the beginning of the year.
Chainlink’s fundamentals have also contributed to the ongoing rebound. One of them is that the Grayscale Chainlink ETF (GLNK) has continued adding inflows this year. The fund had $1.1 million in inflows on Tuesday, bringing the cumulative net total to $63.32 million.
The GLNK ETF has now added over $4.16 million in inflows this year, a notable performance as inflows as the fund experienced little or no inflows in the final days of the year.
Meanwhile, Chainlink has continued to accumulate LINK tokens since August last year as part of the Strategic LINK Reserves. Data shows that the network bought 94,267 coins last week, bringing the total holdings to 1.42 million.
These tokens are now worth over $19.4 million, a figure that will keep rising this year. The Strategic LINK Reserves strategy uses Chainlink’s on‑chain and off‑chain fees to purchase its token.
This process reduces the circulating supply. Its goal is to reduce inflation and boost the token’s value eventually.
Nansen data also shows that whale investors have continued to accumulate the LINK token in the past few weeks. Whales are large investors who are often respected because of their experience in the crypto industry.
The combination of these factors has led to a significant decline in the amount of LINK tokens in exchanges. Data compiled by CoinGlass shows that there are now 123.20 million tokens in exchanges. It was down sharply from 158 million in October last year.
Chainlink Has Strong Fundamentals
Whales and investors are accumulating the LINK token. They see strong fundamentals at the intersection of finance and blockchain. This confidence continues to support the upward momentum of the LINK price.
Chainlink’s core product is its oracle, which brings the off-chain data to the on-chain. A good example of this is price feeds, which it collects from various sources and then brings them on-chain. As a result, this technology makes it possible for DeFi companies to operate well.
Chainlink’s oracle service has a total value secured (TVS) of over $52 billion. That gave it a market dominance of 63%. It is much bigger than other competitors like Chronicle, RedStone, and Pyth Network
Chainlink has emerged as a major player in the Real‑World Asset (RWA) tokenization industry. Analysts expect this sector to keep expanding rapidly. Strong growth in RWA adoption continues to support the upward momentum of the Chainlink price.
It does that by offering the Cross-Chain Interoperability Protocol (CCIP). This enables the communication of various entities. It has linked major partnerships with companies like Coinbase, UBS, BitMex, Euroclear, and Swift.
Chainlink Price Technical Analysis
The weekly chart shows that the LINK price moving in a strong downward trend. The crypto market crash accelerated this decline.
It then settled at an important support level. This coincides with the ascending trendline that connects the lowest swings in June 2023, August 2024, April, and June last year.
Chainlink price has always rebounded whenever it moved to that support level. At the same time, the Relative Strength Index (RSI) has pointed upwards and moved to 42.
The most likely LINK price prediction stays moderately bullish. It holds that outlook as long as the price remains above the lower side of the ascending channel.
If this happens, the token will likely rebound and move to the key resistance level at $20. On the flip side, a move below the support at $11.48 will invalidate the bullish outlook and point to more upside.
The post Chainlink Price Prediction: ETF Inflows and Shrinking Exchange Supply appeared first on The Market Periodical.