Chainlink Price Prediction: LINK ETF Inflows Up, Reserves Down

Chainlink price continued its freefall on Friday as the crypto market tanked. LINK has now dropped for three consecutive weeks and is hovering at its lowest level since April last year.

It has sunk by over 63% from its highest level in December 2024 despite some positive news. This includes the rising ETF inflows and falling exchange balances.

Chainlink Price Has Crashed Despite Rising LJNK Inflows

Chainlink price continued the recent downward trend that has cost it billions of dollars in value in the past few months. This crash happened despite Chainlink having some of the best fundamentals in the crypto industry.

For example, SoSoValue data shows that the Grayscale and Bitwise LINK ETFs have continued to accumulate assets this month. This is notable as funds of other popular altcoins like Dogecoin and Hedera have dried up.

The two ETFs added $1.4 million in assets on Thursday, bringing the weekly jump to $3.6 million. They have had weekly inflows since their approval in December last year.

The data shows cumulative inflows have surpassed $74 million. Net assets have risen to more than $81 million. This equals about 1% of the total market capitalization.

The rising ETF inflows are notable as larger cryptocurrencies have shed assets this month. Spot Bitcoin ETFs have lost over $1.1 billion in assets this year, while Ethereum funds have lost over $100 million.

Strategic Chainlink Reserve is Growing

More LINK accumulation is coming from Chainlink itself. This has made five purchases this month as part of a strategic reserve. The reserve now holds 1.77 million coins worth over $19 million.

This accumulation will likely continue growing in the coming years because Chainlink’s business is doing well. Data compiled by DeFiLlama shows that Chainlink has made over $69 million in annualized on-chain revenue.

It has made much more than that in its off-chain revenue, a trajectory that will accelerate as key industries like decentralized finance and real-world asset (RWA) tokenization grow.

The amount of LINK tokens on exchanges has kept dropping in recent weeks. It now stands at 119 million. That’s down from last year’s peak of 158 million. Falling exchange balances are important as they are a sign that investors are accumulating the token.

Why Chainlink Price is Falling Despite the Strong Fundamentals

Chainlink price is tumbling despite the strong fundamentals because of the ongoing crypto market crash. This has affected Bitcoin and most altcoins. Bitcoin price dropped to $81,000 on Friday, while the market capitalization of all coins fell to $2.8 trillion.

The crash happened after news broke about Donald Trump’s plan. He will announce Kevin Warsh as his choice for the next Federal Reserve Chairman. Investors reacted sharply to the development. Warsh is seen as an inflation hawk who has talked ill about the crypto industry in the past.

Additionally, there are rising odds that Donald Trump will launch an attack against Iran in the coming week. It’s a move that will lead to higher volatility and inflation.

Chainlink Crypto Price Technical Analysis

The daily timeframe chart shows that the LINK price has crashed in the past few days. It has moved from a high of $14 on January 14 to the current $10.7. It has dropped below the key support level at $11.7, the lower side of the horizontal channel.

The coin has moved below the 50-day and 100-day Exponential Moving Averages (EMA) and the Supertrend indicator. Also, the Average Directional Index (ADX) has continued rising and is now hovering near its highest level since December 3. It’s a sign that the momentum is continuing.

Therefore, the most likely Chainlink price prediction is bearish, with the next key target being the psychological level at $10. A drop below $10 will raise the odds of it moving to $7.78, its lowest level in August 2024.