Like Chainlink’s 18% rally (LINK) might simply be the start

Despite a slight drop in Bitcoin and Ethereum prices, Chainlink remains strong. With a rally of 22% last week and 4.1% on the daily chart, LINK is one of the biggest winners in the top 10, trading at $ 33.07 at the time of writing.

LINK to an uptrend in the 24-hour chart. Source: LINKUSDT Tradingview

From the retailer’s point of view, LINK’s price structure is very optimistic. After moving sideways in the past few weeks, the cryptocurrency has managed to break a large resistance barrier of USD 32.

Trader Michaël van de Poppe stated that LINK has bottomed out in the LINK / BTC trading pair. The trader reiterated the thesis that LINK’s gains will continue to expand, placing support at 0.0004 sats and a possible 253% increase to 0.0017 sats if LINK breaks its higher resistance levels.

Source: Michaël van de Poppe

On the LINK / BTC pair, the trader “Jon” said:

Officially, the massive downtrend line broke out in August. Lines from the previous uptrend corridor can represent important levels at this stage. 5 part Elliot impulse wave to ATH would be a fun scenario.

Chainlink’s potential to extend its rally

It appears that the beginning of LINK’s positive momentum can be traced back to its inclusion in the Grayscale product suite. A few hours ago, the company announced the inclusion of LINK in the Digital Large Cap Fund.

Of the recently added cryptocurrencies (MANA, LIV, BAT, FIL), LINK is the only one qualified to participate in this product, according to Grayscale. Its job is to give investors a strategy to earn passive rewards by getting involved in 70% of their cryptocurrency basket.

Due to the affiliation with Grayscale products, the demand for LINK has increased. This trend could continue due to the expansion of Chainlink’s partnerships.

Last month, Chainlink’s oracle services were integrated into the Polkadot parachute ecosystem, which can be powered by the Substrate network. Chainlink has also been incorporated into Ethereum by some of the most famous DeFi protocols.

The latest partnership was underpinned with the decentralized trading platform dYdx, which is supported by a16z and Three Arrows Capital. Chainlink was even used in the NFT sector to enable the tokenization of “Ether Cards” that were minted after certain events in the “real world”:

. @ dydxprotocol now uses #Chainlink Price Feeds on level 2 @StarkWareLtd ZK rollup. By using STARK-compatible signatures, the low costs and latency for updating oracle updates in seconds enable secure and scalable decentralized perpetual trading markets on dYdX.

– Chainlink – Official Channel (@chainlink) April 6, 2021

Chainlink’s use cases and interoperability for multiple oracles seem to further increase LINK’s buying pressure.

RookieXBT recommended keeping an eye on other BAND and TRB based Oracle services. With a growing DeFi sector valued at more than $ 50 billion, these services could see significant growth in adoption.

. @ dydxprotocol now uses #Chainlink Price Feeds on level 2 @StarkWareLtd ZK rollup. By using STARK-compatible signatures, the low costs and latency for updating oracle updates in seconds enable secure and scalable decentralized perpetual trading markets on dYdX.

– Chainlink – Official Channel (@chainlink) April 6, 2021

Comments are closed.