Chainlink (LINK) is at a major turning point: ETF prospects and new price momentum.

Chainlink (LINK) is experiencing a continuous 下行 trend over the past month, as the price has slid down to $11.5 amidst ongoing market volatility putting pressure on major altcoins. However, despite this weakness, investor sentiment towards Chainlink is showing positive changes.

The launch of the spot ETFs for XRP and Dogecoin this week has made LINK a strong candidate for the next altcoin ETF — a factor that could create a significant turning point for the price trajectory.

Will Grayscale apply for a Chainlink ETF?

Recently, Grayscale released an in-depth research report, expressing an optimistic view on the long-term value of Chainlink. The report emphasizes the essential role of LINK as a foundational infrastructure, helping to securely connect on-chain smart contracts with off-chain real-world data.

Notably, LINK is currently the largest token outside of the Layer-1 group by market capitalization, providing diverse access to the digital economy. The report also mentions that Chainlink is continuously expanding partnerships with large organizations, playing an increasingly important role in the tokenization of real assets and meeting the growing demand for its services.

Grayscale's in-depth analysis shows strong confidence from institutional investors — a strong signal that LINK may be preparing for the next ETF product.

Analysts predict the upcoming LINK ETF

Bloomberg's ETF analyst, Eric Balchunas, has contributed to raising new expectations. In two recent posts, he mentioned that the Chainlink ETF — possibly Grayscale's GLINK — is in the development process and is likely to launch very soon.

“Grayscale's Dogecoin ETF ($GDOG) has been approved for listing on the NYSE and is expected to begin trading on Monday. The XRP spot ETF will also launch on the same day. $GLNK is also set to go public, I think it's next week.”

After the successful launch of the XRP and Dogecoin ETFs, he continued to assert earlier this week that GLINK could be launched as soon as December 2, in line with the current pace of altcoin ETF approvals.

Several upcoming ETFs | Source: Eric BalchunasDepository Trust & Clearing Corporation (DTCC) also reinforces this view as it has listed Bitwise Chainlink ETF Beneficial Interest on its website, indicating another LINK ETF is awaiting approval.

Bitwise is famous for launching the first Solana ETF and the second XRP ETF. With LINK now listed and Bitwise continuously expanding its ETF portfolio, the likelihood of launching a product in the near future is very high.

Listing of Bitwise ETF | Source: DTCC## LINK price awaits recovery momentum

LINK is currently trading around $12.81, close to the resistance level of $12.94 but still under pressure from the downtrend that has lasted for a month. Technical signals indicate market caution; however, the inflow from ETFs could quickly change the landscape.

If the spot ETF for LINK is approved, new capital could help break the downtrend and push the price of LINK above the levels of $13.77 and $14.66. Such a strong increase would help LINK recover the 31% decline since the beginning of November.

LINK price analysis | Source: TradingViewOn the other hand, if the approval process is delayed, LINK may lose support and fall to $11.64 or lower, completely invalidating the bullish thesis and further extending the 下行 trend.

Mr. Giáo