Chainlink Wallets Surge Past 535K as $8 Watch Level Tightens
Chainlink (LINK) is holding a limited recovery around $8 after a weekend drop to $6.99. On-chain data and institutional flows point to rising interest, even as price remains capped.
Santiment data shows the number of addresses holding at least 1 LINK jumped to 535,650 on Monday, the highest since December 2022. The article frames this as gradual accumulation: more active wallets, though not necessarily large holders.
Institutional demand also improved. LINK exchange-traded products (ETPs) recorded $1.81M net inflows on Monday, lifting total net assets under management to $101.21M. Importantly, there have been no outflows since the ETP tracking started on Dec 2.
Derivatives are mixed. LINK futures open interest rose more than 4% to $373.06M, and the funding rate flipped from -0.0023% to +0.0024% (mildly bullish). However, liquidations totaled $269,290, with $195,880 driven by closed long positions, suggesting longs are still getting squeezed near resistance.
Traders are watching a leveraged futures cluster between $8.00 and $8.10. A daily close above $8.13 (then $8.31) could trigger short-liquidation cascades and push LINK toward the 50-day EMA near $9.04. Key longer-term resistances sit higher ($9.48 100-day EMA, ~$10.70 200-day). Momentum shows RSI around 35 (oversold recovery potential) while MACD remains negative.
Neutral
The article highlights improving fundamentals for Chainlink via higher wallet counts and continued institutional inflows, but it also notes a price ceiling near $8 and long-side liquidation pressure. This combination typically leads to a neutral near-term setup: demand signals may support rebounds, yet overhead resistance and leverage dynamics can cap upside until LINK confirms breakout.
In similar past episodes, when wallet/activity metrics and ETP flows rise while derivatives show mixed liquidation flows, traders often see chop or sharp wicks rather than a clean trend. The key determinant here is whether LINK can close above $8.13/$8.31 and sustain strength above the $8.00–$8.10 leverage cluster; otherwise, the market may revert to squeeze-and-retest behavior.
Longer term, the persistence of wallet growth since late 2022 and the absence of ETP outflows since Dec 2 are supportive for accumulation narratives. But technically, with the 50D/100D/200D averages still above price and MACD still negative, bulls likely need more confirmation before positioning for a sustained move.