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SEC's Approval Boosts Chainlink's Momentum Toward $20: What Investors Should Know

Chainlink has kicked off the year with positive momentum, driven by the SEC's recent approval of the Bitwise Chainlink ETF.

This development has led to significant accumulation of LINK tokens among larger investors, with about 4.5 million tokens, valued at approximately $62 million, withdrawn from exchanges.

The decrease in exchange balances indicates a potential supply crunch which could further elevate prices.

Notably, Chainlink's open interest surged from $510 million to over $700 million, suggesting an uptick in trading activity alongside rising volatility.

Recent data shows that Chainlink has surpassed over 6.9 million in total fees, indicating strong demand for its data services across various applications.

Currently trading around $13.3, Chainlink is facing resistance from the 50-day and 100-day moving averages near the $13.6 to $13.8 range.

Despite a recent dip of over 5%, LINK maintains its position above the 20-day exponential moving average, presenting a bullish outlook.

Technical indicators are mixed, with a declining Relative Strength Index (RSI) suggesting some selling pressure.

However, if Chainlink can breach its immediate resistance levels, it may target the $20 mark without significant hurdles.

Overall, while short-term fluctuations persist, the long-term trend for Chainlink appears promising as investor enthusiasm grows.