- Chainlink price dropped from 34.75 to 31.15 this Wednesday.
- On the upside, moderate resistance lies at the $33 resistance barrier.
The Chainlink price rose from $25 on March 26 to $34.75 on April 6 – raising by almost $10. However, this Thursday, LINK dropped drastically to $31.15, as the bears stepped back into the market. Let’s take a closer look with technical analysis
Chainlink Price Recovers After Sharp Drop
The Chainlink price faced a brief bullish recovery this Thursday wherein LINK went back up to $32. It seems like despite this Wednesday’s dip, the overall market sentiment remains positive, as seen in the MACD indicator.
Image: LINK/USD daily
Looking at the IOMAP, the Chainlink price faces a lack of strong resistance levels upfront. The only one of note is at $33. Previously, 8,300 addresses had purchased 11.5 million LINK tokens, at this level.
Grayscale Adds Chainlink
Grayscale Investments has recently announced their updated fund component weightings for the Grayscale Digital Large Cap Fund. The update was made possible through the sale and rebalancing of fund components in proportion to their respective weightings. The cash proceeds were used to purchase Chainlink (LINK).
The fund aims to anticipate and eliminate any difficulties in buying, selling, and storing cryptocurrencies directly. As of March 2021, Grayscale had approximately $41 billion under its management, with $34.7 of that in Bitcoin (BTC).
This rebalancing update comes only a few weeks after Grayscale announced its five new investment trusts, including LINK. The Grayscale Chainlink Trust offers investors exposure to the price movement of LINK, the trust’s native token.
Chainlink runs on the Ethereum blockchain and utilizes the LINK token to incentivize node operators on Chainlink to provide oracle services to transfer data from off-chain to on-chain sources. With this recent redistribution of funds, the fund components amount of LINK reaches 0.90%, indicating Grayscales’ faith in LINK as a virtual asset.
Chainlink Price Is Expected To Reach These Levels
The Chainlink price will rise up and hit the $33 resistance zone again. If LINK overcomes this, it will be able to reach $35.