In a significant move, HashKey, Hong Kong’s compliance exchange, has recently received approval to offer Avalanche (AVAX) and Chainlink (LINK) for trading by retail investors. This development marks a notable expansion in the region’s cryptocurrency trading options, which were previously limited to Bitcoin (BTC) and Ethereum (ETH). The inclusion of AVAX and LINK provides retail investors with access to these high-potential tokens, reflecting a broader trend of increasing cryptocurrency adoption in Hong Kong.
The approval for AVAX and LINK trading is a strategic step for HashKey, aiming to diversify its offerings and attract a wider range of investors. This move is expected to enhance the trading experience for retail users, offering them more choices and potentially higher returns. The positive market response to this development underscores the growing interest in these digital assets.
Market Reactions and Price Movements
Following the announcement, both AVAX and LINK experienced significant price movements. Avalanche’s AVAX/USDT pair initially consolidated around the $27 price level, forming a head and shoulders pattern before dropping to $23. This decline met an order block that provided support, allowing the price to stabilize. The news of AVAX’s approval for trading in Hong Kong led to a price bottom at $23, creating a double bottom and breaking through a short-term high. However, the uptrend is yet to be confirmed, as a successful retest of this double bottom pattern is needed, particularly during the Asian trading sessions in the coming months.
Chainlink’s LINK also saw notable price movements. After breaking out of a 14-day consolidation, LINK surged but faced resistance at the $12 level. Prior to the announcement, LINK’s price swiftly declined but found support around $10.91. Like AVAX, LINK formed a double bottom pattern on the hourly chart and broke structure, although it too awaited a retest for confirmation of an upward trend. The positive market reaction to HashKey’s approval positions LINK as a cryptocurrency to watch closely.
Surge in Trading Activity
The HashKey Hong Kong exchange announcement led to a surge in trading activity for AVAX and LINK assets. Avalanche’s AVAX/USDT pair recorded 21,490 trades, while Chainlink’s LINK/USDT saw 17,540 trades, indicating strong liquidity and increased investor interest. This surge in trading activity reflects the growing confidence in these assets and the broader acceptance of cryptocurrency trading in Hong Kong.
The increased trading volume for AVAX and LINK is a positive indicator of market sentiment and investor interest. Extending this success to other pairs and exchanges would enhance liquidity further, attracting more traders and investors. This development is likely to have a ripple effect, encouraging other exchanges to expand their offerings and support a wider range of cryptocurrencies.
Rising Open Interest
Following the HashKey approval, the Open Interest for both AVAX and LINK rose, with AVAX outperforming LINK in this area. Open Interest is a measure of the total number of outstanding derivative contracts, such as futures and options, that have not been settled. The rise in Open Interest for AVAX and LINK indicates increased trading activity and investor interest in these assets.
The increase in Open Interest suggests that more investors are taking positions in AVAX and LINK, anticipating future price movements. This trend is a positive sign for the long-term prospects of these cryptocurrencies, as it indicates growing confidence and participation in the market. As cryptocurrency adoption continues to grow globally, AVAX and LINK are well-positioned to benefit from this trend.
Conclusion
The approval of AVAX and LINK trading on HashKey Exchange marks a significant milestone for the cryptocurrency market in Hong Kong. This development not only expands the trading options for retail investors but also reflects the growing acceptance and adoption of digital assets in the region. The positive market response, surge in trading activity, and rising Open Interest for AVAX and LINK underscore the potential of these assets as promising investment opportunities.
As these assets gain traction in Hong Kong and beyond, their prices could trend higher, presenting promising prospects for investors. The inclusion of AVAX and LINK on HashKey Exchange is a testament to the evolving cryptocurrency landscape and the increasing demand for diverse and high-potential digital assets. Investors should closely monitor these developments and consider the potential benefits of including AVAX and LINK in their portfolios.