HashKey, a compliance-driven cryptocurrency exchange in Hong Kong, recently expanded its offerings by securing approval to allow retail investors to trade Avalanche (AVAX) and Chainlink (LINK). This marks a significant development in Hong Kong’s crypto market, where initially only Bitcoin (BTC) and Ethereum (ETH) were available for retail trading. The inclusion of AVAX and LINK has broadened the trading options for investors in the region, and both assets have shown positive price movements in response.
AVAX’s Market Reaction
Focusing on Avalanche (AVAX), the AVAX/USDT pair initially consolidated around the $27 price level, forming a head and shoulders pattern—a bearish indicator that often precedes a price decline. As expected, the price dropped to $23, where it encountered an order block, which acted as a support level and allowed the price to stabilize.
Following the news of AVAX’s approval for trading in Hong Kong, the price found a bottom at $23, forming a double bottom pattern—a bullish reversal signal—before breaking through a short-term high. However, for this uptrend to be confirmed, a successful retest of this double bottom pattern is needed, particularly during the Asian trading sessions in the coming months. If the retest holds, AVAX could see higher prices, making it a crypto asset to watch closely.
LINK’s Market Reaction
Chainlink (LINK) also experienced significant price movements following HashKey’s announcement. LINK had been in a 14-day consolidation phase before breaking out and surging, but it faced resistance at the $12 level. Prior to the announcement, LINK’s price quickly declined but found support around $10.91.
Similar to AVAX, LINK formed a double bottom pattern on the hourly chart and broke its previous structure, suggesting a potential uptrend. However, like AVAX, LINK awaits a retest to confirm this upward trend. Given the increased interest and trading volume following HashKey’s approval, LINK is positioned as a crypto to watch, with the potential for further price appreciation.
Increased Trading Activity and Open Interest
The HashKey approval led to a notable surge in trading activity for both AVAX and LINK. Avalanche’s AVAX/USDT pair recorded 21.49K trades, while Chainlink’s LINK/USDT saw 17.54K trades, indicating strong liquidity and growing investor interest. This increased trading activity suggests that both assets are attracting more attention from traders and investors, which could lead to enhanced liquidity and further interest in these cryptocurrencies.
In addition to the spike in trading volume, Open Interest—an indicator of the total number of outstanding derivative contracts—also rose for both AVAX and LINK. Notably, AVAX outperformed LINK in this area, suggesting that AVAX might offer a better long-term investment opportunity as cryptocurrency adoption continues to grow globally.
Conclusion
The approval of AVAX and LINK for retail trading on HashKey’s Hong Kong exchange has positively impacted both assets, with increased trading activity, rising Open Interest, and potential bullish patterns forming on the charts. As these assets gain traction in Hong Kong and potentially in other markets, their prices could trend higher, offering promising prospects for investors.
