Chainlink (LINK) surges after news from Grayscale: Is the uptrend sustainable?

Chainlink (LINK) is recording an impressive upward trend, with a price surpassing 23 USD on Monday, driven by the news that Grayscale has officially submitted a filing to the Securities and Exchange Commission of America (SEC) to launch the LINK ETF.

Grayscale submits application to launch Chainlink ETF

Grayscale has just filed an S-1 application with the SEC, proposing access to a market-valued Chainlink ETF. This move reflects Grayscale's efforts to expand access to digital assets beyond familiar products like Bitcoin (BTC) and Ethereum (ETH).

The Chainlink ETF fund based on market price will closely track the real-time price fluctuations of LINK, providing direct opportunities for institutional investors through the stock exchange. If approved, this will be one of the first funds to offer managed exposure to the tokens that operate Chainlink's decentralized oracle network.

According to the records, Grayscale intends to list an ETF on the NYSE Arca with the code GLNK, sponsored jointly by Grayscale Investments Sponsors, LLC and Grayscale Operating, LLC, according to Reuters.

Meanwhile, the interest from individual investors in Chainlink continues to increase. The average open interest (OI) of futures contracts reached 1.58 billion USD on Monday, up from 1.47 billion USD the previous Friday. If OI – that is, the nominal value of outstanding futures contracts – remains stable in the coming days, demand for LINK may surge, reinforcing the short-term bullish outlook. High OI indicates strong confidence among traders in LINK's ability to maintain its upward momentum.

Chainlink Open Contract | Source CoinGlass## Technical Outlook: Chainlink Bulls Tighten Control

Chainlink continues to maintain a price above 23.00 USD after successfully breaking out of the descending wedge pattern on the 4-hour chart. This oracle token is currently firmly anchored on the 50-period exponential moving average (EMA) at 22.87 USD, solidifying its short-term bullish structure.

A strong buy signal was triggered by the MACD indicator on Sunday, further enhancing bullish prospects. As long as the MACD line (green) remains above the signal line (red), the appeal for LINK will continue to increase, reflecting positive growth momentum.

The LINK/USDT chart on the 4-hour timeframe | Source: TradingViewThe breakout from the descending wedge pattern suggests a potential increase of about 18%, targeting a goal of 26.75 USD. This level is determined by measuring the distance between the two widest points of the pattern and projecting it from the breakout point.

Other positive technical signals include closing above the 100-period EMA on the 4-hour chart at 23.12 USD, along with the relative strength index (RSI) climbing to 57 thanks to strong upward momentum. A higher RSI indicates increased buying pressure as traders continuously build their positions. In the event that profit-taking dominates, the 50-period EMA at 22.87 USD and the 200-period EMA at 22.43 USD will play a crucial role in absorbing potential selling pressure.

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