TLDR
- Chainlink (LINK) shows potential for 20% price increase after bullish pattern breakout
- LINK’s Long/Short ratio at 1.031 indicates bullish market sentiment
- Positive OI-weighted funding rate of 0.0087% further signals bullish outlook
- Key price levels to watch are $13.10 (breakout confirmation) and $15 (potential target)
- Trading volume has declined 25%, suggesting lower trader participation currently
Chainlink’s native token LINK may be on the verge of a significant price surge, according to recent technical analysis.
Crypto traders are closely watching LINK after it broke out of a bullish double-bottom pattern on daily charts, potentially signaling further upside ahead.
The double-bottom is a common chart pattern that often precedes price increases. For LINK, a daily close above the $13.10 level would confirm the bullish breakout. If this occurs, analysts suggest LINK could rally as much as 20% to reach $15 in the near term.
On-chain metrics paint a mixed but generally positive picture for LINK. Data from analytics firm Coinglass shows LINK’s Long/Short ratio currently sits at 1.031, indicating traders are positioning bullishly overall.
The token’s open interest-weighted funding rate is also in positive territory at 0.0087%, typically seen as another bullish signal.
However, LINK’s Relative Strength Index (RSI) still points to a downtrend, presenting a counterpoint to the bullish outlook. The RSI is an important technical indicator used to assess whether an asset is overbought or oversold.
LINK’s future open interest has remained steady over the past day. This suggests traders have neither closed out existing positions nor opened many new ones, possibly due to uncertainty about potential price corrections.
Key liquidation levels to monitor are $12.12 on the downside and $13.16 on the upside, where Coinglass data shows traders are most heavily leveraged.
At the time of writing, LINK is trading near $12.65, up over 1.2% in the last 24 hours. However, its trading volume has declined by 25% over the same period, indicating lower overall market participation.
The broader cryptocurrency market has remained relatively stable recently. Major coins like Bitcoin, Ethereum, and Solana have not seen any significant rallies.
For traders considering LINK positions, the $13.10 level appears to be the key threshold to watch. A decisive move above this price could attract more buyers and potentially kick off the projected 20% upswing. However, a failure to break this resistance could lead to consolidation or a pullback.
