Chainlink price has remained in a narrow range this year, but the Elliot Wave pattern points to a rebound amid rising catalysts.
Key Takeaways
- •Chainlink price has remained in a narrow range this year.
- •The spot LINK ETFs have accumulated over $92 million in assets.
- •The Elliott wave suggests that the coin has more upside.
Chainlink (LINK) token was trading at $13.7 on Friday, down sharply from its highest point last year. Its market capitalization has moved to nearly $10 billion.
Emerging Catalysts for Chainlink's Growth
LINK has several catalysts that may boost its performance in the near term. Bitwise launched the CLNK ETF this week, joining Bitwise’s GLNK fund. It has now gained over $2.5 million in inflows and nearly $5 million in assets.
The two funds have accumulated over $66 million in inflows and have $92 million in assets. These net assets are equivalent to 0.96% of the market cap, meaning that they have more room to go.
Meanwhile, CME Group, the biggest futures company in the United States, will launch LINK futures products. Such a launch will make it possible for more American investors to trade it with leverage.
The Strategic LINK Reserve has continued to accumulate assets. It now has 1.59 million LINK tokens worth $22 million, a figure that will likely continue growing over time. It added 82,057 coins this week.
All this is happening as the supply of LINK tokens in exchanges has continued moving downwards. Data compiled by CoinGlass shows that the supply has dropped to 120 million, down from last year’s high of nearly 160 million.
Chainlink Price Prediction: Technical Analysis
The weekly chart shows that the LINK price has stalled in the past few weeks. This stalling happened near the lower side of the rising broadening wedge pattern, a common bullish continuation sign.
An Elliot Wave analysis shows that the token may be ripe for a bullish breakout in the near term. It recently completed forming the CD phase, which happened between December 2024 and November last year.
Therefore, it may be about to start the DE phase, which is usually bullish. If this happens, the next key level to watch will be at $27, its highest level in August last year. Such a move would be a 100% jump above the current level.
On the other hand, a move below the lower side of the broadening wedge will invalidate the bullish outlook.