Chainlink (LINK) remains at a significant high, while the broader view suggests further upward pressure with free space above the last two year's high. Considering the ongoing ETFs talk and crypto bull, LINK could be a good investment opportunity for traders.
LINK ETF: Is it Possible?
Grayscale established the first regulated Bitcoin trading vehicle for institutions, establishing a pioneering presence in the crypto ETF industry. Additionally, the company has applied to convert its Ethereum Trust into an ETF, potentially becoming the first company to offer a fund whose price is directly tracked by LINK.
Analysts predict a new exchange-traded fund (ETF) called Chainlink (LINK) that will be introduced shortly. The tokenization domain is witnessing an increase in the importance of LINK tokens as organizations transition from tokenizing blockchain ETFs to tokenizing tangible assets.
An analyst remarked that the use of LINK by ARK Invest to validate its Bitcoin holdings could portend the forthcoming introduction of a new ETF.
21 Shares, an ETF collaborator of ARK, currently holds 693,639 LINK tokens in circulation. The fact that institutional investors have access to these tokens suggests that a market for a Chainlink ETF already exists.
In addition, Chainlink's Proof of Reserves has been integrated by 21 Shares to verify the authenticity of its Bitcoin holdings for the Ark 21 Shares Bitcoin ETFs.
LINKUSD Grabbed Institutional Trader's Interest
As institutional investors transition from ETFs to blockchain tokenization, the price of LINK may continue to rise. Sergei Nazarov, the chief executive officer of Chainlink, recently told Bloomberg that after the crypto ETF frenzy, institutions would establish a distinct token economy.
Oracles of Chainlink, external data sources that supply blockchain infrastructure with real-world data, are crucial to tokenized assets. They verify whether a financial institution has the necessary collateral to support any assets it issues on-chain. The use of this data could be a crucial fundamental driver for LINK price.
LINKUSD Technical Analysis
In the daily chart of Chainlink price, the broader market direction is bullish, while the dynamic 50-day EMA works as a crucial support. Moreover, the most recent selling pressure from the 20.9374 level found support at the 17.6290 level, from where a bull run has come.
Considering the Fibonacci Extension level from the swing mentioned above, the 161.8% level is marked at the 22.98 level. In that case, a bullish continuation, followed by the long-term direction, might find this level as a target point.
On the bearish side, extensive selling pressure with a bearish daily candle below the 19.0000 psychological level could be a potential reversal opportunity, targeting the 14.0000 area.
