Chainlink Targets $13.50 as ETF Inflows Hit Yearly Record

Key points for Chainlink:

• On Monday, Chainlink was trading close to $13.50, building on a rebound that began from a $12.09 low on Thursday.
• Friday saw LINK-focused ETFs draw in $9.48 million, the biggest one-day intake so far in 2024, as tracked by SoSoValue.
• If a breakout is confirmed, $13.93 may become the next target; on the downside, support lies at $13.32 and $12.95.

Chainlink stayed above $13 on Monday, with increased ETF demand and a growing share held by large wallets underpinning its recovery from the previous week's decline.

LINK changed hands near $13.34, climbing from Thursday's $12.09 trough. The price is now testing resistance around $13.50; a sustainable move above that level would bolster the argument for further gains.

Chainlink ETFs Notch Daily Inflow of $9.48 Million

On Friday, LINK-specific ETFs pulled in $9.48 million, the highest single-day total for 2024, data from SoSoValue shows.

The funds have seen inflows for five straight weeks, indicating consistent demand via conventional investment vehicles.

This buying activity offers a favorable environment for LINK's rally, but ongoing inflows will be crucial for the recovery to push past the nearby resistance.

Big Holders Increase Their Stake in LINK Supply

According to Santiment, wallets with balances of 1 million to 100 million LINK now represent 65.6% of the circulating supply.

That is up from 65.38% as of October 1, a rise of 0.22 percentage points. The growing share implies greater exposure among holders with substantial balances.

However, these wallet size brackets may include exchange wallets and other entities, so the data does not solely reflect individual investors.

Combined with favorable ETF flows, the data suggest demand is strengthening as LINK tries to reverse its recent downturn.

Chainlink Approaches Trendline Resistance at $13.50

Chainlink's wider technical picture is underpinned by an ascending trendline linking the August 10 and September 16 troughs around $12.30.

Still, the token is bouncing back from a decline that started from a high of about $15.77 on September 29.

On the four-hour timeframe, LINK is just above its falling 50-period EMA at roughly $13.32. The immediate challenge is a descending resistance trendline near $13.50, linking the highs from September 30 and October 5.

A verified break above that level could target $13.93, which is the 50% Fibonacci retracement of the drop from $15.77 to $12.09.

If the advance continues, the $15.77 swing high would come into sight, followed by the 127.2% Fibonacci extension around $16.77.

The four-hour RSI sits near 55, above the neutral 50 level, while the MACD has turned positive.

These indicators point to growing bullish strength, but the price must still break through resistance to confirm the move.

On the downside, the 50-period EMA at $13.32 offers the nearest support, with the 200-period EMA at $12.95 as the next level.

A steeper decline would open the trendline zone near $12.30 and Thursday's $12.09 low. Defending those levels would help maintain the recovery setup should the initial breakout falter.