Chainlink Holds Key Support as Whale Buying Counters Selloff

Key Insights

• Chainlink whales added 32.93 million LINK during the recent market pullback, increasing holdings despite weaker Bitcoin sentiment and ETF outflows.

• LINK futures open interest climbed toward $495 million as institutional activity and network growth supported Chainlink price stability near support.

• Chainlink maintained support near $9.87 while State Street and Galaxy expanded blockchain infrastructure projects using NAVLink and CCIP technology.

Chainlink traded near $9.89 on Friday after falling 2.1% during a wider crypto market decline driven by weaker Bitcoin sentiment. The token pulled back after a strong weekly rally that lifted LINK nearly 10% before traders began locking in profits across large-cap digital assets.

Reports showing nearly $268.5 million in net outflows from U.S. spot Bitcoin ETFs on May 8 added pressure across the market. Consequently, traders shifted toward defensive positions as Bitcoin lost momentum during the session.

Support Zone Remains Important

LINK recently climbed toward $10.23 before retreating near the 23.6% Fibonacci retracement level around $9.87. However, lower trading volume during the decline pointed to softer selling activity rather than panic exits from the market.

The current structure places immediate focus on support between $9.65 and $9.87. A stable hold within that area could keep the recovery path open toward another move above $10.23 in the coming sessions.

Besides, analysts continue watching the 61.8% retracement near $9.28 if selling pressure increases further. LINK price movements still closely follow Bitcoin trends during broader risk-off periods across crypto markets.

Whale Wallets Increase LINK Holdings

On-chain data continued showing steady accumulation among large holders despite the recent decline. Santiment reported that wallets holding between 100,000 and 10 million LINK added 32.93 million tokens over the past month.

That increase lifted total holdings for the group by 7.7% and pushed combined balances near 461 million LINK. Significantly, those wallets now control nearly 46% of the token’s total one billion supply.

Large holders often increase positions during weak or sideways markets instead of late-stage rallies. Hence, traders view the latest accumulation trend as a sign of stronger long-term conviction among major investors.

Institutional Demand Adds Momentum

Institutional activity also supported market sentiment around Chainlink. Data from SoSoValue showed LINK-focused spot ETFs recorded about $532,900 in inflows on Wednesday, while Grayscale LINK ETF inflows reached nearly $878,000 on May 7.

Additionally, LINK futures open interest climbed from about $444 million to nearly $495 million during the recent recovery period. Rising derivatives exposure alongside steady price action often signals fresh capital entering the market.

Network growth also improved through higher daily active addresses and transaction activity since early May. Moreover, State Street Investment Management and Galaxy Asset Management launched an on-chain liquidity sweep fund using Chainlink NAVLink and CCIP infrastructure.