Key Insights
- Chainlink surged above $23 after Grayscale applied to launch a Chainlink ETF.
- Accumulation among LINK holders has increased and is showing a rise in investor confidence.
- Technical indicators are pointing to the ongoing bullishness and $44 – $100 as a possible long-term target.
LINK broke through resistance levels this week, amid news that Grayscale applied to the US Securities and Exchange Commission (SEC) to convert its existing Chainlink Trust into an exchange-traded fund (ETF).
The filing boosted sentiment and helped push LINK’s price to $23.62 on September 9.
Analysts believe this breakout may only be the beginning of a larger move.
Technical Breakout Reinforces the Chainlink Price Forecast
For weeks, Chainlink struggled to move past resistance. However, strong buying pressure has now changed the gears. According to the 4-hour chart, the Money Flow Index climbed to 76.10, which indicates heavy inflows.
At the same time, the Bull Bear Power indicator flipped positive, showing stronger demand from buyers.
This breakout has created a new support level near $21.90. If bulls can defend this area, LINK could test resistance at $27.15 in the short term. Analysts also believe that the asset’s strength above this range may open the way for a move toward $30.99.
Historically, breaking out of a falling wedge tends to be the end of downtrends.LIN’s ongoing pattern indicates that the recent correction phase may be over.
Grayscale ETF Application Adds to Optimism
Grayscale’s ETF proposal has been another major talking point because of how it expands institutional access to altcoins beyond Bitcoin and Ethereum. If approved, the fund would trade on NYSE Arca under the ticker GLNK, and Coinbase Custody Trust Company could act as a custodian.
This move shows the ongoing interest in structured crypto investment products. Grayscale targeting Chainlink means that it is betting that demand for decentralised oracle solutions will continue to grow.
The filing itself has helped sentiment so far, and is reinforcing the view that LINK may be ready for a strong rally.
Chainlink Holder Accumulation Backs the Price Forecast
Alongside the ETF news, on-chain data shows that investors are actively adding to their LINK positions.
The Holder Accumulation Ratio rose to 51.32% recently, and is showing that net buying activity has been strong lately. Historically speaking, Ratios above 50% show that participants are holding rather than selling.
This metric is important because it shows the conviction of active investors. Sustained accumulation reduces selling pressure, tightens supply and can create conditions for price increases.
Daily Chart Confirms Bullish Structure
According to the daily timeframe, Chainlink has broken above the upper boundary of a falling wedge pattern. This reversal structure usually marks the end of a downward trend and the start of an uptrend.
According to Ali Martinez, however, the formation on LINK is more of a symmetric triangle that has held for years. This means that if LINK can break above the $26.52 price level, it could climb upwards to $30.99.
If this happens, analysts are eyeing the $44 price level as the next resistance zone, before the $100 price level.
Despite the improving outlook, some risks could slow progress. For example, a failure to hold current support may trigger fresh selling. A rejection at the $26 resistance could also return LINK to lower ranges, and $18.09 has already been identified as the next support zone.
Macro conditions and regulatory developments may also influence sentiment, especially as the ETF review process continues. This means that investors should monitor these external factors alongside technical signals.
LINK Aims Higher as Sentiment Turns
The Chainlink price prediction now looks brighter than it has in recent months. Grayscale’s ETF filing and the rising holder accumulation are expected to create a favourable setup for LINK.
While there are a few risks ahead, continued market strength could push LINK toward $30 in the short term and possibly to $44 in the longer term.
