Wallet count for Chainlink surpasses 535,000! What are investors watching at the $8 level?

Chainlink’s native token LINK maintained a limited recovery on Tuesday, hovering around the $8 mark after hitting a two-year low of $6.99 over the weekend. This recent price movement coincided with an uptick in on-chain data and institutional inflows, suggesting growing interest in the token.A surge in wallet numbersConsistent institutional inflowsA mixed picture in derivativesKey technical levels in focus A surge in wallet numbersData from Santiment reveals that the number of addresses holding at least 1 LINK soared to 535,650 on Monday. This figure marks the highest wallet count since December 2022. Despite LINK’s price currently sitting well below previous cycle peaks, a broader section of users appears to remain engaged with the network.Mini glossary: Santiment is an analytics platform providing on-chain data and market indicators for crypto assets. On-chain data refers to metrics directly obtained from transactions and wallet activities on the blockchain.According to SantimentData’s post on X, the timing of this surge—while LINK’s price lags far behind its previous highs—is particularly significant. The platform considers persistent growth in wallet numbers a signal of gradual adoption and accumulation throughout the ecosystem.While these newly active wallets are not in the category of large investors, the increase in small balance addresses suggests that activity on the network extends beyond short-term trading. Consistent institutional inflowsExchange-traded products (ETPs) tracking LINK recorded $1.81 million in net inflows on Monday, bringing total net assets under management to $101.21 million. Notably, there have been no outflows from these investment vehicles since tracking began on December 2.The simultaneous rise in both institutional inflows and individual wallet counts points to the emergence of two distinct layers of demand at current price levels.A mixed picture in derivativesOpen interest in LINK futures jumped over 4 percent in the last 24 hours, reaching $373.06 million. The funding rate also shifted from negative 0.0023 percent to positive 0.0024 percent, indicating a modestly bullish shift among derivatives traders.However, of the total $269,290 in liquidations during this period, $195,880 resulted from long positions being closed. This dynamic suggests that bullish investors remain under pressure as long as LINK struggles to sustain gains above $8.There is currently a dense cluster of leveraged futures positions between $8.00 and $8.10. If LINK manages a sustained breakout above this band, short liquidation cascades may follow—potentially fueling sharper upward price moves.Key technical levels in focusTechnical indicators show the 50-day exponential moving average at $9.04, the 100-day at $9.48, and the 200-day average near $10.70—all above the current price. The relative strength index sits at 35, pointing toward a recovery from oversold levels, though the MACD remains negative.The first resistance level stands at $8.13, with the next at $8.31. Should LINK close above these thresholds on a daily basis, the 50-day moving average could become the next upside target for traders watching the chart closely.Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.