Chainlink whale·ETF·reserves simultaneously absorb… increased supply pressure

Chainlink (LINK) whales increased their holdings by 32.93 million LINK in just one month, bringing their total holdings close to 46% of the total supply. As spot Chainlink ETFs and Chainlink reserves continue to absorb chips, market observers believe that “supply shortages” could become a catalyst for price rebounds.

According to data from Santiment on the 13th, wallets holding between 100k and 10 million LINK increased their holdings by 7.7% over the past month. These wallets hold 461 million LINK, accounting for about 46% of the total issuance of 1 billion. Santiment explained that these whales tend to keep buying during bear markets rather than during price increases.

In fact, in the first quarter of this year, when Chainlink (LINK) was consolidating near multi-month lows, large holders continued to absorb circulating chips in the market. As the amount flowing out of exchanges increased, analysis indicated that a structure for sharp price volatility could be forming as long as demand recovers.

Institutional funds are also flowing in. On May 7th, Grayscale’s spot Chainlink ETF saw a net inflow of approximately $878k, increasing its assets under management to $92.54 million. The two active LINK spot ETFs hold about 1.58% of Chainlink’s total market cap.

Chainlink reserves are also growing rapidly. Recently, an additional 119,241 LINK was added, bringing the total holdings to over 3.55 million. The reserve was about 1 million LINK at inception, reached 1.4 million in January, 2.17 million in February, and doubled in just a few months.

Regarding price trends, some analysts believe it is approaching a turning point. Cryptocurrency analyst Jonathan Carter noted that Chainlink (LINK) is converging within a weekly symmetrical triangle pattern. He predicts that once it breaks above $11.50, the upside potential could open to $22, and in a strong bullish scenario, possibly reach $48.

According to data from Coinglass, LINK’s open interest has also increased by 5.2%, reaching approximately $444.52 million. With whales, ETFs, and reserves simultaneously absorbing chips, the market is closely watching whether Chainlink (LINK) can achieve a true breakout.

Summary by TokenPost.ai 🔎 Market Analysis: Chainlink (LINK) is undergoing structural changes, with whales, ETFs, and reserves absorbing chips simultaneously, leading to a rapid decrease in circulating supply. Especially as whales continue accumulating during bear markets, they now control about 46% of the total supply, increasing supply pressure. Coupled with rising outflows from exchanges and increasing open interest, the market has entered a zone of potential heightened price volatility. 💡 Strategy Highlights: In the short term, whether it can break above $11.50 is a key trigger; once broken, the trend is highly likely to shift. Under the structure of decreasing supply, an influx of demand could trigger a sharp price surge, so it’s crucial to judge based on trading volume and ETF capital inflows. As long as whales keep accumulating, support levels below will strengthen, but in the short-term overheating zone, managing volatility is necessary. 📘 Terminology Explanation: Whales: investors holding large amounts of cryptocurrency capable of influencing market prices. Open interest (OI): the total amount of open contracts in derivatives markets, an indicator of market sentiment. Symmetrical triangle pattern: a technical pattern where price converges and then determines direction; a breakout may lead to a strong trend. ETF: a fund traded on exchanges like stocks, a main channel for institutional capital inflow.

💡 FAQ (Frequently Asked Questions)

Q. Why is whale accumulation of LINK important? When whales hold about 46% of the total supply, circulating chips in the market decrease. In this state, if demand increases, a supply shortage could significantly boost prices. Q. How does ETF capital inflow affect prices? ETFs are an accessible channel for institutional investors. Continuous capital inflows translate into actual token purchases, creating demand pressure and upward price movement. Q. What signals should be watched for Chainlink price increases? From a technical perspective, breaking above $11.50 is a key threshold. Additionally, increased outflows from exchanges, rising open interest, and ETF capital inflows occurring simultaneously can provide clearer bullish signals.

TP AI Notes: This article summary is generated based on TokenPost.ai language model. It may omit details or differ from the original content’s facts.