Chainlink's Price Plunge: Holders Optimistic Ahead of Potential SEC Spot ETF Approval

Chainlink's price has been on a downward trend since reaching a multi-year high of $30.78 in December 2024, with a 43% decline to around $17.4 as of February 22nd. Despite this sharp decline, some analysts believe that the token could experience a rebound in the coming months. This optimism is driven by several factors.

Firstly, data from LINK and CoinGlass indicates that holders have not been selling the coin abruptly, and exchange balances have been falling. The balance has dropped to 138.8 million LINK coins, the lowest since September 2024, when it fell to 160 million. This decline suggests that investors are optimistic about the coin's future and are holding onto it in anticipation of potential profits.

Investors' optimism is largely attributed to the expectation that the US Securities and Exchange Commission (SEC) will approve a spot LINK ETF. This approval could significantly boost the token's price. Additionally, Chainlink's position as one of the largest oracle networks, with a total value of $35 billion, and its pioneering role in real-world asset tokenization using its cross-chain interoperability protocol (CCIP), further strengthen the case for a potential rebound.

Technical analysis of LINK shows strong indicators. The weekly chart reveals that the token is hovering slightly above the 100-week Exponential Moving Average, despite the 43% crash. Analysts predict that the initial rebound target for the token could be $30, followed by a retracement point of $35. However, it is essential to remain cautious, as market volatility can lead to unpredictable price movements.