The first Chainlink ETF in the US makes a significant impact, attracting $41.5 million at launch. Institutional interest in LINK is undeniable, with whales accumulating massively. Technical analysis indicates a major breakthrough, but is the path to the 2021 all-time high really clear?
The technical structure of Chainlink has undergone a radical shift coinciding with the launch of the ETF. The token has broken out of a descending channel that had been compressing it for a month, a signal that technical analysts were monitoring closely. This breakout could serve as a launchpad toward all-time highs, especially if institutional flows through GLNK remain sustained.
But what’s really intriguing the market is the behavior of large addresses. Lookonchain has identified 39 new wallets that have withdrawn 9.94 million LINK from Binance since October, worth approximately $188 million. This massive accumulation during the market correction reveals strong conviction among large holders.
Not all large investors are swimming in profits, however. OnchainLens spotted a particularly unlucky whale that accumulated 2.33 million LINK over six months for $38.86 million. This position is now showing an unrealized loss of $10.5 million. A brutal reminder that even strategic accumulation carries major risks, especially for those who entered near local tops.
The open interest data tells a fascinating story. After experiencing a significant decline, open interest has climbed back to approximately $7 million, indicating renewed engagement from traders in derivatives markets. When price and open interest rise simultaneously, it generally suggests bullish momentum supported by new long positions.
This positive dynamic nevertheless conceals a risk that analysts are not overlooking. The whales that accumulated before the ETF launch could reach their profit targets or simply break even. If these holders decide to take profits massively, the selling pressure could quickly neutralize institutional flows and create a technical correction before any serious attempt at new highs.
The market is therefore at a critical inflection point. LINK is currently testing important resistance levels while traders evaluate two opposing scenarios: either ETF flows will continue to dominate and push the price toward ATH, or profit-taking from early adopters will create a temporary ceiling. The answer will largely depend on GLNK‘s ability to maintain its attractiveness to institutions in the coming weeks, and on the evolution of overall sentiment in the crypto market.
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