Chainlink Price Holds Above $9 SMA as Institutional Demand Takes Hold

Chainlink's recent price action has been characterized by a steady rise from its March 28 low of $8.20 to its current level of $9.20. The token's 50-day simple moving average (SMA) is currently at $9.09, which is rising and providing support for the price.

The on-chain data suggests that institutional demand may be driving the recovery in Chainlink's price. Supply compression is evident, with a decrease in exchange reserve from 141 million to 136.9 million since April 2. Additionally, the number of individual transactions depositing LINK to exchanges has fallen to 173, near the 30-day low.

The institutional context provides further evidence of this demand. Swift concluded tokenized bond trials with major European banks using Chainlink's Cross-Chain Interoperability Protocol (CCIP), which enables different blockchains to communicate and settle with each other. This partnership has led to increased adoption and interest in Chainlink, as demonstrated by the creation of regulated products such as Grayscale's LINK Trust and Bitwise's LINK ETF.