Since breaking out of consolidation a week ago and holding at $8.1, Chainlink has traded within an ascending channel.
In fact, the altcoin jumped to $9.7 before cooling and stabilizing around $9.5.
As of this writing, Chainlink traded around $9.4 after rising 0.17% on the daily chart. Amid this market slowdown, institutional investors signaled a major comeback.
Why are Chainlink ETF inflows rising?
Chainlink [LINK] experienced renewed institutional demand as Spot ETFs recorded inflows again. In fact, Chainlink Spot ETFs recorded Net Inflows for two consecutive days.
According to SoSoValue, LINK Spot ETF Net Inflows jumped to $2.07 million on the 17th of August. This followed $1.47 million in Net Inflows during the previous week.
Interestingly, Bitwise appeared to drive most of these inflows. Its Chainlink ETF aggressively accumulated LINK over the past six days.
According to Arkham, the Bitwise Chainlink ETF purchased 171,870 LINK from Coinbase and Wintermute. These purchases were worth $1.708 million. Following this buying spree, the ETF held 3.092 million LINK worth $30 million.
Bitwise’s buying signaled shifting sentiment among institutional investors. Previously, LINK performed well when institutions accumulated the altcoin.
Furthermore, exchange activity also indicated this market shift. Spot Netflow dropped into negative territory after rising one day earlier.
Spot Netflow fell to -$1.4 million, indicating that more LINK left exchanges than entered them. Higher exchange outflows have often strengthened market demand, leading to gains on the price charts.
Can Chainlink reclaim $10?
Likely strengthened by institutional demand, Chainlink’s upside momentum increased significantly.
The Positive Directional Index (+DI) maintained its upward trajectory and climbed to 33. At the same time, the ADX rose to 30. With the ADX and +DI rising together, the indicators suggested strong upward momentum.
The Aroon Up confirmed this market view, remaining elevated at 78.
Together, these indicators signaled possible trend continuation, with buyers maintaining substantial dominance.
Under these market conditions, Chainlink could record further gains. If demand holds, LINK could finally reclaim the $10 resistance level. This bullish outlook remains valid as long as LINK holds above $9.
Final Summary
- Bitwise purchased 171,870 LINK worth $1.708 million from Coinbase and Wintermute.
- Chainlink Spot ETFs recorded Net Inflows for two consecutive days.
