The price of Chainlink‘s native token, LINK, experienced a modest recovery, maintaining a level close to $8 following a recent dip to $6.99, the lowest in two years. This rebound coincided with heightened activity in on-chain metrics and a noticeable rise in institutional investments, signaling an increasing appetite for the cryptocurrency.
Why Are Wallet Numbers Growing?
Recent data provided by Santiment highlights a significant increase in the number of wallets with at least 1 LINK, now totaling 535,650, the highest figure since December 2022. The growth in wallet numbers comes even as LINK’s price remains substantially below its peak from previous cycles. This trend indicates that more users are becoming engaged with the Chainlink network, suggesting a pattern of accumulation.
The increase in wallet numbers reflects broader user engagement beyond mere speculative trading, despite these active wallets not being classified as major investors. Small-sized addresses are rising, underscoring the network’s enduring appeal to a diverse group of holders.
Could Institutional Interest Signal Further Growth?
Investment products focused on LINK saw net inflows amounting to $1.81 million, resulting in a total of $101.21 million in managed assets. Since tracking these investments started on December 2, no significant outflows have been reported, shedding light on a wave of mounting institutional interest in LINK.
The alignment of increasing institutional flows with a rise in individual wallet counts points to an evolving market dynamic, where demand is emerging across different investor categories at current price levels.
In the derivatives market, LINK futures saw a significant upward trajectory, with open interest jumping over 4% to reach $373.06 million. The shift in funding rates from negative to positive suggests a subtle leaning towards bullish sentiment among traders.
Nonetheless, a notable proportion of liquidations, amounting to $195,880, came from long positions, indicating that those betting on price rises face pressures as LINK has yet to decisively move past the $8 mark.
• The 50-day exponential moving average is at $9.04, while the 100-day and 200-day averages are at $9.48 and $10.70, respectively.
• The relative strength index holds at 35, indicating a recovery from oversold territory; however, the moving average convergence divergence remains negative.
• Key resistance levels are pegged at $8.13 and $8.31, and surpassing these could elevate the 50-day moving average as the next target for LINK enthusiasts.
A successful close above these resistance points could set the stage for a push towards the 50-day moving average, suggesting further bullish trends if achieved. Market participants are closely watching these developments for signs of sustained price advancements.
