Chainlink [LINK] has displayed a positive outlook following its breakout above a significant descending trendline, indicating a potential continuation of its upward trajectory.
Currently trading at $12.79, LINK has witnessed a 4.50% price hike in the last 24 hours and a 9.73% increase over the past week.
With a circulating supply of 630 million LINK, the cryptocurrency boasts a market cap of $8.02 billion, backed by a 24-hour trading volume of $565.3 million.
Crucial Resistance Levels in Focus
The primary objective for LINK now is to sustain its momentum above the $13.00 threshold in order to uphold the bullish trend.
A successful breach above the $19.14 resistance level could indicate further strength, with potential targets stretching to $20.00 and beyond if buying pressure persists.
These levels are regarded as pivotal milestones that could shape LINK’s short-term price direction.
Technical analysis on the 4-hour chart suggests that LINK is hovering near the upper Bollinger Band at $11.589, signaling a short-term bullish sentiment.
Nevertheless, the middle band at $11.332 serves as immediate support, and a drop below this level might push LINK towards the lower band at $11.076.
This configuration highlights a balance between buying interest and the risk of a downturn if support fails.
Decisive Yet Moderate Bullish Momentum
The Relative Strength Index (RSI) stands at 56.46, slightly above the neutral 50 mark, indicating a moderate bullish momentum.
This implies that while there is room for further price upticks, the current buying pressure is not overwhelming, suggesting the potential for short-term consolidation.
The RSI reading suggests that LINK’s price could advance further, but challenges may arise without a more robust push from buyers.
The Moving Average Convergence Divergence (MACD) indicator exhibits a minor bullish crossover, with the MACD line slightly above the signal line at 0.069.
This configuration indicates a mild yet positive momentum, hinting at the possibility of continued gains if the lines diverge further.
However, the close proximity between the MACD and signal lines implies a need for caution, as momentum could shift rapidly.
Encouraging Trends Unveiled
Recent on-chain data highlights a surge in Chainlink’s transactional activity, with 17.56k transactions recorded during the week of September 16th, a stark increase from the 7-day average of 2.58k transactions.
While this uptick signifies growing interest, transaction levels at present remain below the peaks observed in mid-2021.
Derivatives data from Coinglass showcases heightened market activity, with trading volume climbing by 14.57% to $420.62 million and Open Interest rising by 6.94% to $204.09 million.
These trends underscore the increasing participation in LINK’s market, bolstering its current price actions and overall outlook.