Chainlink: Could This Demand Zone Propel LINK Past $13?

Chainlink (LINK) is experiencing significant demand signals as whale activity increases and anticipation builds for the upcoming ETF launch. Recent data shows a continuing outflow of tokens from exchanges, indicating a potential accumulation phase. The formation of a double-bottom pattern and rising whale orders further supports the idea of a possible price rebound.

Key Takeaways

Outflows Indicate Accumulation: A recent outflow of $2.65 million suggests traders are withdrawing LINK from exchanges, which may lead to increased buyer confidence.
Buyer Dominance Observed: The Taker Buy CVD shows that buyers are absorbing sell orders, reinforcing bullish sentiment.
Whales Are Active: Increased whale orders in the demand zone can enhance the chance of price recovery, especially with institutional interest from ETFs.
Potential Double-Bottom Pattern: LINK is forming a double-bottom structure, signaling possible trend reversal if certain price thresholds are maintained.
ETF Buzz: The anticipated ETF conversion by Grayscale could further boost LINK's demand and price potential.

Chainlink demand test: Can LINK rebound as whales accumulate and ETF hype grows?

Chainlink’s Outflow Trends

Chainlink (LINK) experienced a substantial outflow of $2.65 million recently, which is part of an ongoing trend of tokens moving off exchanges, as evidenced by inflow/outflow data. This pattern typically indicates that traders are accumulating rather than liquidating their assets, establishing a firm demand zone. For LINK to see bullish momentum, it must demonstrate momentum and maintain this outflow trend, boosting buyer confidence as liquidity diminishes.

Buyer Activity and Market Sentiment

The Taker Buy CVD chart showcases strong buyer commitment, with buy-side takers consistently absorbing sell orders over the past 90 days. This behavior reinforces confidence as buyers actively step in when prices approach the demand boundary. While sellers still attempt to exert pressure during pullbacks, buyers' quick responses help stabilize price movements, particularly around the emerging double-bottom formation. If this trend continues, LINK could gain the momentum necessary to target the next cluster of liquidity, challenging resistance near $13.49.

Chainlink Spot Taker CVD (Cumulative Volume Delta, 90-day)
Source: CryptoQuant

Whale Activity and ETF Anticipation

The Spot Average Order Size indicator reveals that larger trades are being executed, indicating whale activity is increasing near the demand zone. This activity generally signals a strengthening rebound potential since larger buyers are stepping in during these accumulation phases. However, the necessity for sustained follow-through remains, as isolated large orders won’t support long-term price stability. As the Grayscale ETF launch approaches, whales seem to be positioning themselves to benefit from the expected increase in demand.

Chainlink Spot Average Order Size
Source: CryptoQuant

Analyzing LINK’s Price Structure

Chainlink is currently shaping a potential double-bottom pattern, with the second reaction forming in the same accumulation zone. This formation often indicates a weakening bearish trend, but confirmation is still needed before buyers can target higher price levels. The critical defensive area is identified between $11.50 and $12.20, where buyer activity can significantly influence market behavior. This demand zone aligns with observed whale activity and recent outflows, adding to its significance. A strong price reaction from this area could pave the way for LINK’s rise toward $13.49.

Chainlink price action
Source: TradingView

ETF Dynamics and Market Impact

The forthcoming conversion of Grayscale’s Chainlink trust into a spot ETF presents an important catalyst during this critical market phase. This change may introduce a fresh wave of institutional interest and increase overall demand as market access becomes easier. ETF approvals typically attract more emotionally driven inflows, akin to a reaction based on market sentiment rather than just price levels. However, the ETF initiative cannot maintain momentum alone; it requires substantial technical support, which the current demand zone appears to offer, aligning with ongoing accumulation signs and the developing double-bottom structure.

Is A Rebound for Chainlink on the Horizon?

Chainlink is presenting several positive signals. Increasing outflows, dominant buyer activity as shown by Taker Buy CVD, and heightened whale order sizes suggest early accumulation interest. The potential double-bottom formation at the demand zone adds structure to the recovery narrative. Furthermore, the looming ETF conversion adds a layer of momentum to the market. These combined factors heighten the possibility of a price rebound if buyers persist in defending this critical area.

Final Thoughts

The outlook for Chainlink looks optimistic as various indicators suggest strengthening demand. As whale activity increases and the market anticipates the change brought by the ETF, LINK may well see an upward trajectory if current trends hold.