Key Insights
- Chainlink price has remained in a tight range for the past few weeks.
- The Elliot Wave pattern points to a strong rebound in the near term.
- LINK exchange balances have fallen as ETF inflows have jumped.
Chainlink price remained in a tight range this weekend as bulls remained on the sidelines. LINK token price was trading at $13.25, inside a range it has been in for the past few days. Still, the token may rebound as LINK ETF inflows rise and the supply on exchanges continues to fall.
Chainlink Price Technical Analysis
The weekly chart shows that the LINK token price has pulled back from last year’s high of $27.72. That has been the token’s highest level from August 18 to the current $13.25. LINK price has retreated below the 50-week Exponential Moving Average (EMA) and the Supertrend indicator.
While these indicators are bearish, the coin has formed other bullish patterns that point to more gains in the coming weeks. It has formed an ascending channel and is now hovering near its lower side.
A closer look at this chart shows that the altcoin has always rebounded whenever it moved to the lower side of this channel. It has also formed similar consolidations before the past rebounds. For example, it formed this consolidation in June 2023, September 2024, and May last year.
The current consolidation is happening at the Ultimate Support of the Murrey Math Lines tool. Chainlink has also completed the formation of phase CD of the Elliot Wave pattern. It is about to move to wave DE, which is often bullish.
Therefore, the token is likely to rebound as bulls target the upper side of the channel at $27.72, which is approximately 106% above the current level. The initial target before hitting that level will be at $18.75, the Strong, Pivot, Reverse level of the Murrey Math Lines tool.
However, a drop below the lower side of the ascending channel will invalidate the bullish LINK price forecast. It could indicate further downside, potentially reaching the psychological level at $10.
Supply of LINK Tokens in Exchanges is Falling
The other bullish catalyst for the Chainlink price is the reduced supply of tokens on exchanges. It has been in a free fall for the past few months.
Data compiled by CoinGlass shows that there were 122 million LINK tokens in exchanges, down from the December high of 119.70 million tokens. The supply has been falling from last year’s high of 158 million.
A sharp decline in LINK tokens in exchanges is usually a bullish sign. It shows that investors are moving their tokens from centralized exchanges to their self-custody addresses.
LINK ETF Inflows Have Risen This Year
Meanwhile, more American investors are investing in LINK ETFs. Data compiled by SoSoValue shows that the Grayscale Chainlink ETF added over $464k on Friday. Its cumulative net inflows soared to over $63.78 million, bringing the net assets to $83 million.
The GLNK ETF has added over $4.6 million in inflows this month after adding $59 million in assets in December. This trend is likely to continue in the coming months as the Securities and Exchange Commission (SEC) has already approved the Bitwise LINK ETF. It will launch soon.
The other main catalyst for the LINK price is that the Strategic LINK Reserve will continue gaining assets in the coming months. Data shows that developers bought 87,829 LINK tokens on January 8, bringing the total assets to 1.5 million tokens, which are currently worth nearly $20 million.
Chainlink price will also benefit from the ongoing growth of the financial industry. In a statement, Sergey Nazarov, Chainlink’s founder, noted that Chainlink is at the intersection of decentralized finance (DeFi) and Traditional Finance (TradFi). That will usher in the new global financial system.
Chainlink has already inked deals with some of the biggest players in the DeFi and TradFi industries. Its total value secured (TVS) in the DeFi industry has jumped to over $50 billion. It also has partnerships with TradFi companies, such as Swift, Euroclear, and UBS.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
