Chainlink (LINK) has experienced a notable price increase, currently hovering around $10 after witnessing nearly a 10% surge this week. The cryptocurrency closed above crucial resistance levels, signaling positive momentum in the market. Institutional demand is showing signs of recovery, particularly evident in the inflow of over $500,000 into spot Exchange Traded Funds (ETFs) on Wednesday, following a two-week lull.
Data from SoSoValue indicates that spot LINK ETFs recorded an inflow of $532,900 on Wednesday, suggesting that if this trend continues in the coming days, LINK may see further price gains. Institutional interest appears to bolster this outlook, especially with the recent announcement by global asset managers State Street Investment Management and Galaxy Asset Management regarding the launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP). This new tokenized liquidity fund is powered by Chainlink and utilizes functionalities like NAVLink for on-chain Net Asset Value data and the Cross-Chain Interoperability Protocol (CCIP) to enable seamless cross-chain connectivity, showcasing an increased institutional embrace of blockchain infrastructure.
On-chain activity for Chainlink further supports this bullish sentiment. Metrics from Santiment reveal a steady rise in Chainlink’s daily active addresses, transaction volume, and network growth since early May. These indicators underline a growing engagement by users and participation within the network, providing additional backing for a positive price trajectory for LINK.
The derivatives market is equally signaling optimism. CoinGlass data shows that the futures’ Open Interest (OI) for LINK has surged to $495.74 million by Thursday, up from $366 million recorded on Sunday. This increase indicates that new capital is flowing into the market, hinting at potential upward momentum for LINK’s price.
As for the technical aspects, Chainlink is currently trading at approximately $10.10, maintaining a neutral-to-bullish short-term outlook. The price has successfully reclaimed the 50-day and 100-day Exponential Moving Averages (EMAs) at $9.29 and $9.84, respectively. However, it continues to operate below the 200-day EMA at $11.50, which poses a broader trend limit.
The Relative Strength Index (RSI) stands near 66, suggesting LINK is approaching overbought conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) remains in positive territory, hinting at increasing upside momentum but facing medium-term resistance.
On the upside, initial resistance is seen at the 50% retracement level, approximately $10.77, followed by stronger resistance near the 200-day EMA at $11.50 and the 61.8% Fibonacci retracement at $11.63. A more prominent barrier emerges around $12.07, accompanied by the 78.6% Fibonacci level at $12.85.
Conversely, immediate support is identified around the $9.92 mark, aligning with a horizontal floor and the 38.2% Fibonacci retracement, succeeded by the 100-day EMA at $9.84. A deeper pullback could expose the 50-day EMA at $9.29 and the 23.6% Fibonacci retracement at $8.86, with a more remote support level at $8.19.
Overall, the convergence of institutional interest, robust on-chain activity, and positive derivatives data positions Chainlink (LINK) favorably as it seeks to break through critical resistance levels in the coming days.
