Chainlink Stalls Near Key Level as ETF Inflows Rise

Chainlink is currently testing resistance near $9.56 after a productive week that saw the price jump over 14 percent. The token is trading around $9.42, keeping it above key support levels but just shy of the 200 day exponential moving average. Traders are watching this level closely, as clearing it could spark further gains toward $10.00.

Sentiment in the derivatives market is leaning cautious. The long to short ratio has dipped to 0.90, and funding rates have turned slightly negative. This shows that many futures traders are betting on a pullback after the recent rally. While this sentiment is cautious, it also creates the potential for a short squeeze if the price manages to break through current resistance barriers.

Institutional demand offers a counterweight to the bearish futures sentiment. Spot LINK exchange traded funds recorded over $2 million in inflows on Monday, the highest daily total since late July. Sustained interest from these institutional investors could provide the momentum needed to absorb selling pressure.

For now, $9.39 remains the immediate support level to monitor. If the price holds above this point, the recovery remains intact. A drop below this area could lead to a decline toward the 50 day and 100 day moving averages near $8.50 and $8.60.