Chainlink Price Prediction: Wallet Growth Signals a Potential LINK Crypto Breakout

Chainlink price holds near $8 on Tuesday after recovering from a two-year low of $6.99 during the weekend. LINK gained about 7% on Sunday as buyers returned near the lower support zone. On-chain data also shows that wallets holding at least one LINK have reached their highest level since December 2022.

At the same time, Chainlink investment funds continue to attract capital, while futures activity is rising. These trends support a possible LINK crypto breakout, although several resistance levels still limit the recovery.

Chainlink Wallet Growth Strengthens the Network

Chainlink now has more than 535,000 wallets holding at least one LINK token. Santiment data placed the total at 535,650 on Monday, marking the highest reading in more than three years. Wallet growth has continued even as LINK has fallen for six straight months, losing more than 60% during that period.

Much of the increase has come from smaller wallets. This suggests some retail holders are gradually adding LINK while its price remains well below recent cycle highs.

Chainlink’s technology supports decentralized finance platforms, tokenized assets, and projects tied to real-world assets. More developers using these services may create additional demand for LINK over time.

LINK Funds Extend Their Inflow Streak

Institutional demand has remained firm despite LINK’s weak price performance. Chainlink-focused exchange-traded funds attracted $1.81 million in fresh capital on Monday. The inflows lifted their combined net assets to about $101.21 million.

These investment products have not recorded a daily outflow since their December 2 launch. That record suggests investors have continued to build exposure rather than reduce their positions during the broader decline. Fund inflows and wallet growth now provide two distinct signals of demand at current prices.

Activity in Chainlink’s futures market has increased during the latest rebound. LINK futures open interest reached $373.06 million. Also, liquidations reached about $269,290 during the period. Long traders absorbed nearly $195,880 of those losses, showing that leveraged buyers faced most of the pressure. LINK crypto now needs a stronger rebound to reduce the risk of more bullish positions being closed.

Chainlink Price Prediction Eyes $8.31 Breakout

LINK is still trading below its main moving averages, which keeps the broader chart under pressure. The 50-day exponential moving average is near $9.04, followed by the 100-day average at roughly $9.48. The 200-day average, around $10.70, forms another major hurdle.

For now, traders are watching resistance between $8.13 and $8.31. A close above this area could improve the short-term setup and bring the 50-day average near $9.04 into focus.

On the downside, LINK has support near the $7.48 pivot level. A break below that area could bring the February 6 low of $7.15 back into focus. The weekend low of $6.99 would form the next major support zone.