The recent Chainlink price recovery has stalled at a crucial resistance level, pointing to a reversal despite strong fundamentals. LINK token was trading at $13.22 on Friday morning, slightly below the 50-day Exponential Moving Average (EMA) at $13.8.
Chainlink Price Waits for GLNK ETF as Reserves Jump
LINK price has several important catalysts that, in theory, should push it higher in the coming days. One of them occurred on Thursday, when the developers reported a new addition to the Strategic LINK Reserves, launched in August.
Chainlink used on-chain and off-chain fees to buy 89,079 coins, the largest purchase since the project began. This purchase brought cumulative purchases to 973,753, totaling $13 million.
Chainlink hopes to keep adding more tokens to the Reserves in perpetuity, a move that will continually reduce the amount of tokens in circulation.
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Meanwhile, the token is awaiting Monday, when Grayscale will launch the first spot ETF in the United States, a move that will likely drive more investor demand.
While investors can easily buy LINK tokens on exchanges, some are considering buying the ETF instead. A good example of this is XRP and Solana, whose inflows have jumped since their launch.
Grayscale’s Chainlink ETF launch will be followed by Bitwise’s, which filed for approval in the past few months.
The Grayscale LINK ETF launch comes two weeks after the company called Chainlink a pivotal player in the crypto industry because of the services it offers. It provides the biggest oracle solution and has a substantial market share compared to networks like Redstone and Band Protocol.
Chainlink has also become an important tool in the real-world asset tokenization industry, which analysts believe will be worth trillions of dollars. It does so through products such as the Cross-Chain Interoperability Protocol (CCIP), which facilitates communication between different chains.
LINK Price Technical Analysis
The chart above shows that the LINK token attempted to rebuild this week after falling to a low of $11.56 on November 21. This recovery was not strong, as evidenced by the falling Average Directional Index (ADX), which dropped to 15 from last week’s high of 30.
Chainlink found substantial resistance at the 50-day Exponential Moving Average (EMA), which has often capped gains in the past few months. It has also continued forming a number of lower lows and lower highs.
Therefore, the most likely Chainlink price forecast is bearish, with the first target being at $11.57, its lowest level this month. A drop below that level will signal more downside, likely to a psychological level at $10.
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