Grayscale adds Chainlink to its large-cap crypto fund, providing tailwind to LINK price
- Chainlink is now included as an offering in Grayscale’s Digital Large Cap fund.
- Chainlink oracles are now being used by dYdX protocol and Ether Cards to create dynamic NFTs.
- LINK price has confirmed a bullish breakout and has room for a 20% upswing.
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Chainlink adoption gains traction due to multiple oracle integrations and significant development in the institutional realm. LINK price affirms these growing fundamentals and hints at a bullish outlook.
Grayscale welcomes LINK
In a recent announcement, Grayscale Investment Company revealed a change to their Digital Large Cap fund (GDLC) as it included Chainlink’s native token LINK. This step marks the oracle token’s entry alongside other prominent cryptocurrencies like Bitcoin, Ethereum, Litecoin and more.
This move follows the freshly launched Grayscale Chainlink Trust, which opens LINK up to interested institutional investors. At the time of writing, 0.9% of the GDLC’s portfolio is allocated to the oracle token.
The investment company now holds 115,570 LINK tokens, which is a 131% increase since March 31.
Other developments include the integration of Chainlink oracles by StarkWare, a blockchain company that creates L2 scaling solutions. This development will help the company extend the oracle functions to high-performance Layer 2 solutions.
A crucial step for Chainlink’s adoption was its entry into the Non-Fungible Token (NFT) space through the Ether Cards company. The blog stated,
In order to bring about the unlimited potential of dynamic NFTs, we are working intimately with Chainlink as the go-to oracle solution for Ether Cards. We have already begun integrating Chainlink VRF as a means of providing developers with access to verifiable randomness on-chain.
With this integration, dynamic NFTs, equipped with smart contracts, or other NFTs, are one step closer to reality.
LINK price eyes new all-time highs
The Chainlink price created multiple lower highs and higher lows, which evolve into a pennant when the swing points are connected using trend lines. A 115% surge that precedes this consolidation is known as the flagpole.
Together, they form a bullish pennant pattern. This technical formation forecasts a 53% rally, equivalent to the flag pole’s height added to the breakout point at $29.41.
April 1 marked a successful breach of this setup, which kick-started an uptrend toward $45.19. At the time of writing, this uptrend faces resistance around its previous all-time high at $36.93.
This barrier is portrayed by the Momentum Reversal Indicator’s breakout lines that extend from $37.2 to $39.2. Hence, a decisive close above this level on the daily chart provides a secondary confirmation toward the target at $45.19.
LINK/USDT 1-day chart
It would be fatal for the oracle token if the buyers fail to push past the area of resistance mentioned above. Suppose the Chainlink price slices through the 50 Simple Moving Average (SMA) at $29.21, a 13% drop to the 100 SMA at $25.25 could most likely ensue.
However, if the sellers manage to keep the LINK price below $24 for an extended period, it would create a lower low and invalidate the bullish outlook.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
