Chainlink (LINK) has managed to stabilize at approximately $14, demonstrating a bullish sentiment after forming notable chart patterns on the daily chart. Amidst fluctuating conditions in the broader cryptocurrency market, LINK’s price action suggests a possible rebound on the horizon.
Currently, LINK has formed a double-bottom pattern at $11.56, with a neckline at $13.50, which technical analysts often interpret as a bullish signal. Additionally, it has created a large falling wedge pattern characterized by converging descending trendlines, with LINK recently breaking above the upper boundary of this wedge.
Adding to the bullish sentiment, the token is nearing its 50-day moving average and appears to be on the verge of crossing above the Supertrend indicator. Analysts are targeting the next resistance level around $20, indicating a potential 45% upside from its current position. However, a fall below the critical support at $11.56 could negate this optimistic outlook.
The Grayscale LINK ETF has captured the attention of investors since its inception, amassing nearly $50 million in assets in just a few days. Daily inflows have been consistent, leading to reports of accumulating interest in LINK as institutional investors recognize its potential.
The ETF currently holds approximately $48 million in assets, which translates to about 0.75% of LINK’s overall market capitalization. As a comparison, Bitcoin and Ethereum ETFs typically represent around 5% of their respective market caps, suggesting that the LINK ETF has considerable room for growth.
Whale Activity Fuels LINK’s Growth
Recent data reveals that exchange supplies of LINK have declined significantly, falling from a peak of 264 million to 218 million tokens. This reduction is accompanied by increased interest from whales, who have ramped up their holdings from 1.73 million tokens in November to 3.56 million tokens today. Notably, one whale recently purchased 1.62 million LINK tokens valued at $22.01 million from Binance and Kraken, further underscoring the trend of accumulation.
Following this purchase, the whale’s total holdings now amount to 2.18 million LINK tokens. The trend of negative exchange netflow has become more pronounced, indicating a shift towards accumulation as more tokens are leaving exchanges than entering them.
Strategic Reserves and Retail Investor Behavior
The Chainlink team established Strategic LINK Reserves in August 2025, which currently hold 1 million tokens valued at approximately $14.7 million. These reserves are financed through network-generated fees that are reinvested to bolster the overall liquidity of LINK.
As of now, LINK is trading at $13.63, down 4.15% on the day, having recently faced resistance at $14.90. Retail investors have been taking profits following the recent price surge, with data indicating that they sold more than they bought over the course of three consecutive days, resulting in a negative Buy Sell Delta of -0.78 million.
If the selling pressure from retail investors continues, LINK may find support around $12.70. Conversely, should whale accumulation persist, it could significantly shift momentum, allowing LINK to break through resistance levels at $14 and potentially advance towards $15 or even $16.70.
