Chainlink (LINK) recovered from its 6-month low after Bitwise’s spot Chainlink exchange-traded fund (ETF) was approved for trading on the New York Stock Exchange (NYSE) just a few days ago. Meanwhile, LINK is showing bullish momentum on the higher time frames, and if LINK plays by the technical rules, it could hit $26.
Crypto asset manager Bitwise got approval for its Chainlink spot ETF on the NYSE Arca. This approval to list on the exchange comes shortly after the Securities and Exchange Commission (SEC) approved Bitwise’s ETF. As such, the ETF will be launched on the exchange shortly under the ticker CLNK.
The approval comes about 4 months after the asset manager filed for the ETF. Bitwise filed for the ETF back in August, and then later submitted a Form 8-A to the SEC on January 5 for its spot Chainlink ETF. Once the ETF got approval to be listed on the exchange, LINK recovered from its 6-month low and support level of $13.
LINK moves sideways after falling wedge breakout
On the daily chart, Chainlink has broken out of the falling wedge, but unlike a conventional breakout, which produces a massive spike, LINK started to move sideways while hitting $13.7 occasionally.
The prices crash inside the falling wedge, and the range of price fluctuation gets narrower as the buyers keep buying the lower lows and sellers keep pushing the highs lower. As the wedge nears completion, it narrows and the buyers take over, and then a breakout happens with prices spiking drastically.
However, LINK did not produce a massive jump, but it was enough for it to recover from its 6-month low of $13.
Chainlink targets $26, but the $15 and $19 levels obstruct
On the weekly chart, LINK has been moving in a zigzag pattern, hitting the upper and lower trendlines alternatively as it trades inside the ascending channel. Now that LINK has rebounded off of the lower trendline, the next target will be $26, where the upper trendline is.
Even the Relative Strength Index (RSI) indicator is crossing the RSI-SMA, which is a good sign of growing bullish momentum. However, to reach this level ($26), LINK has to break the resistance levels at $15 and $19.
