Chainlink made headlines after Grayscale announced that it would launch a new LINK trust fund for institutional investors, with the token’s price surging by 14%.

Decentralized oracles token Chainlink resumed its uptrend after Grayscale revealed that it would allow accredited investors to issue trust shares backed by LINK. The shares will come with a lock-in period and are non-redeemable, similar to the other prior altcoin listings. 

Chainlink had endured a two-week-long consolidation period before Grayscale’s announcement. As the tenth-largest cryptocurrency by market capitalization made a series of lower highs and higher lows, a symmetrical triangle developed on its 4-hour chart. 

The news from the world’s largest digital asset manager catalyzed LINK to slice through the triangle’s upper trendline to hit a high of $31.40. 

Now, Chainlink could be preparing to advance to new all-time highs if the recent buying pressure persists. The height of the triangle’s y-axis suggests that its market value can rise by 37.50%, which puts LINK at a target of $41. 

Transaction history shows that Chainlink sits on top of a large demand wall with little to no resistance. 

Roughly 13,000 addresses had previously purchased nearly 50 million LINK at an average price of $28.60. Such a massive interest area could absorb any selling pressure behind this altcoin, capping its downside potential. 

Given the lack of supply barriers ahead, only a 4-hour candlestick close below the $28.60 support level might have the strength to invalidate the bullish outlook.

If this were to happen, Chainlink could dive towards the 23.6% Fibonacci retracement level or late February’s low. These crucial areas of support sit at $24.80 and $21, respectively.  

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.

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