Chainlink Price Forms Highly Bullish Pattern LINK ETF Inflows Soar

Chainlink price could be on the verge of a strong bullish breakout in the coming weeks as its bullish technicals coincide with its strong fundamentals, including its growing exchange-traded fund (ETF) inflows, whale buying, falling exchange balances, and soaring Strategic LINK Reserves.

Chainlink Price Technical Analysis Suggests a Rebound is Nearing

The daily chart shows that the LINK price bottomed at $11.56, its lowest level in November and June this year. This bottoming happened as the coin formed the falling wedge pattern, which is one of the most common bullish reversal signs in technical analysis.

A wedge pattern is made up of two descending and converging trendlines, with a bullish breakout happening when it moves above the upper side of the wedge, which the coin has already done.

Chainlink price is trading at the 25-day Exponential Moving Average (EMA), while the two lines of the Percentage Price Oscillator (PPO) have formed a bullish crossover and is nearing the neutral point at zero.

The Relative Strength Index (RSI) and other oscillators have also pointed upwards in the past few days, a sign of a bullish divergence pattern.

Therefore, the coin will likely have a bullish breakout in the coming weeks, with the next key resistance level to watch being the psychological level at $20, which is about 47% above the current level.

The bullish Chainlink price prediction will become if it drop below the support at $11.56. Such a move will raise the possibility of the coin falling below the psychological level at $10.

LINK ETF Inflows are Rising

One main bullish catalyst for the LINK price is that investors have been adding assets to the newly launched exchange-traded ETF. Data compiled by SoSoValue shows that the recently launched Grayscale LINK ETF (GLNK) has had four straight days of inflows, bringing the cumulative total to $48 million.

As a result, the fund now holds over $70 million in assets, meaning that it may cross the $100 million milestone this month.

Another report by CoinShares shows that Chainlink assets have received over $97 million in inflows this year, bringing the total assets under management (AUM) to more than $140 million. Its weekly inflow of $52.8 million was the second-largest last week, after XRP.

LINK Supply in Exchanges Has Retreated

The ongoing LINK ETF inflows and buying by whales explains why the amount of tokens in exchanges has continued falling in the past few months.

Data compiled by Nansen shows that the supply of LINK tokens on exchanges has dropped to 218 million today, down from over 300 million a few months ago. Falling exchange balances is a sign that investors are moving their tokens to self-custody, a sign that they expect it to continue rising.

Whales and other top investors have been accumulating LINK tokens for the past few months. Data shows that whales now hold 3.81 million tokens, representing a 114% increase in the last 30 days. They held the 1.7 million tokens on the same day last month.

Similarly, the top 100 addresses have boosted their holdings by 6.03% in the same period to 651.4 million.

Chainlink’s team is also highly bullish on the token, which explains why they have continued to add more tokens to their reserves. The reserves have moved from zero in August to 1 million tokens today. These tokens are now worth approximately $14.8 million, a figure that will continue to rise as on-chain and off-chain fees increase.

Therefore, Chainlink price has some of the best fundamentals and technicals that will stimulate a rebound in the near term. It has formed a falling wedge and a bullish divergence pattern; whales are accumulating, and the amount of LINK tokens on exchanges is decreasing. All these signals indicate further gains to $20 in December.