- Chainlink price consolidates above $22 within a bull flag pattern after an impulsive rally, with targets set toward $26 and $34.
- Grayscale filed an S-1 with the U.S. SEC to convert its $28 million Chainlink Trust into a spot ETF product.
- Open interest in LINK futures surpassed $2 billion, while Binance and OKX ratios show leveraged traders positioned strongly on the long side.
Chainlink (LINK) is trading steadily as a potential bull flag pattern emerges on the charts. Traders now question whether history could repeat, with projections pointing toward a rally that extends beyond the $34 mark.
Bull Flag Setup Echoes Past Breakout
Crypto trader Axel Bitblaze shared on X that LINK appears to be shaping another bull flag on the 4-hour chart. He recalled that the previous flag breakout triggered an 80% surge, sending the token into higher price zones.
At present, LINK consolidates within a narrow downward-sloping channel while holding firm above $22 support. This structure typically follows a strong upward impulse, creating conditions that technical traders view as primed for continuation.
Bitblaze suggested that an upside breakout could lead to $26 as the first target before pushing toward $34. He added that volume contraction supports the pattern, since reduced activity often precedes expansion when momentum returns.
ETF Filing Adds Institutional Focus
Beyond technical formations, institutional interest continues to develop. Zach Rynes, also known as ChainLinkGod, noted that Grayscale filed an S-1 with the U.S. SEC for a spot LINK ETF.
This move would transform the existing Grayscale Chainlink Trust, which manages $28 million in assets, into an exchange-traded fund. It follows a similar filing from Bitwise in August, reflecting broader efforts to launch LINK-based investment products.
ETF filings often signal growing demand from institutional and retail participants alike. While regulatory review can extend timelines, such developments enhance Chainlink’s visibility within traditional finance circles and can reinforce market sentiment.
Trading Metrics Show Rising Conviction
At the time of writing, LINK was sitting at $23.62 with a 24-hour volume of $1.13 billion. LINK had a 5.31% daily increase. Over the course of the week, LINK moved up 1.67% continuing upward momentum amid good participation.
Futures data shows that open interest has broken through $2 billion and is experiencing one of the largest increases we’ve seen in months. This suggests increased trader exposure and confidence in continuation of the trend but also increases volatility risk.
Leverage positioning further illustrates bullish alignment. On Binance, the long-to-short ratio stands at 2.36:1, with top traders positioned 2.64:1. OKX reports a 1.61:1 ratio, underscoring that market participants remain heavily tilted toward long exposure.
