The central theses
- Chainlink rose more than 14% in minutes after Grayscale announced that a LINK Trust would be created.
- Given the importance of the news, LINK seems poised to move forward.
- The lack of significant resistance suggests that this cryptocurrency could hit new all-time highs.
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Chainlink hit the headlines after Grayscale announced it was launching a new LINK institutional trust fund that was set to rise 14% in price.
Chainlink pumps in grayscale news
Decentralized oracle tokens Chainlink resumed its upward trend after shades of gray revealed that would enable accredited investors to issue LINK supported trust shares. The shares have a lock-up period and cannot be redeemed, similar to the other previous altcoin listings.
Chainlink had lasted two weeks Consolidation Period before the announcement of grayscale. As the 10th largest cryptocurrency by market cap hit a series of lower highs and higher lows, a symmetrical triangle developed on its 4-hour chart.
News from the world’s largest digital asset manager caused LINK to cut the triangle’s upper trendline and hit a high of $ 31.40.
Now Chainlink could prepare to hit new all-time highs if recent buying pressures persist. The height of the triangle’s y-axis suggests that its market value may increase 37.50%, bringing LINK to a target of $ 41.
No resistance ahead
The transaction history shows that Chainlink sits on a large wall of demand with little to no resistance.
Around 13,000 addresses had previously bought almost 50 million LINK at an average price of USD 28.60. Such a massive interest rate range could absorb any selling pressure behind this altcoin and limit its downside potential.
Given the lack of supply barriers, only a 4 hour candlestick below the USD 28.60 support level could have the strength to invalidate the bullish outlook.
If so, Chainlink could be trending toward the 23.6% Fibonacci retracement level or the late February lows. These critical areas of support are at $ 24.80 and $ 21, respectively.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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