Chainlink Outlook: Grayscale Acquisition Could Send LINK/BTC Towards 0.0007000

Summary:

Chainlink (LINK/BTC) could be heading to a projected price point of 0.0007000 following the acquisition of Chainlink tokens by Grayscale for its GDLC fund.

Crypto whale and Grayscale Investments, which operates the largest digital assets hedge fund, has added Chainlink to the list of assets it manages in its Grayscale Digital Large Cap Fund (GDLC). This action took place following the adjustment of the fund’s portfolio, in which some of the fund’s existing assets were sold to raise cash for the Chainlink tokens acquisition.

Grayscale was one of the funds which set off the cryptocurrency market recovery with large BTC purchases as 2020 was coming to an end. The new addition of Chainlink to its GDLC portfolio is already impacting the price of Chainlink in its various crypto pairings, with the LINK/BTC pair surging 9.31% on Tuesday. Even though some sort of correction has played out in Wednesday’s trading sessions, new buying has taken the LINK/BTC pair off intraday lows, as traders seek new bargain prices to initiate purchases.

LINK/BTC currently trades at 0.00056992 as of the time of writing, down 4.86% but remains 8.75% higher for the week.

Technical Levels to Watch

The break of the falling wedge is in progress, with the LINK/BTC pair breaking above the 0.00054547 resistance level. The corrective pullback by the daily candle has bounced off the broken resistance, which now functions as a support level due to the bounce.

This puts price firmly on the path for a push towards 0.00064587, with 0.0006000 psychological resistance (high of April 6) acting as a pitstop. Above this level, 0.00070000 serves as an additional resistance target, before 0.00074681 comes into the picture as a potential future resistance barrier if the price exceeds the price projection of the measured move at 0.00070000.

On the other hand, bears need to see a bearish outside day candle that breaches 0.00054547 to the downside, for the price to resume the decline towards 0.00049130. This price level could be the pivot for the price to resume the breakout move following the corrective pullback move. However, a decline below this level towards the 23 February low at 0.00045085 invalidates the falling wedge. Below this level, 0.00038913 serves as an additional target to the south.