Chainlink Poised for 20% Price Surge Following Bullish Breakout
Chainlink’s [LINK] recent breakout from a bullish pattern has set the stage for a significant uptrend in the coming days. This bullish momentum is in contrast to the overall stability seen in the wider cryptocurrency market, which has yet to witness any major rallies in key assets such as Bitcoin [BTC], Ethereum [ETH], and Solana [SOL].
Technical Analysis and Key Levels for Chainlink
Analysis from CryptoCrypto indicates that LINK has turned bullish after successfully breaking out from a double-bottom pattern on the daily chart. Traditionally, this pattern is seen as a positive signal by investors and traders, often prompting long positions in the market.
If Chainlink manages to close above the $13.10 mark on its daily candle, there is a high likelihood of a 20% surge, pushing the price towards the $15 level. However, it is worth noting that the Relative Strength Index (RSI) for LINK suggests a bearish trend, highlighting the divergence in market sentiment.
RSI is a key technical indicator used in trading and investing to gauge the direction of an asset’s trend, helping traders make informed decisions based on market conditions.
On-Chain Metrics Paint a Mixed Picture
Aside from the technical analysis, Chainlink’s on-chain metrics offer a mixed outlook. Coinglass data reveals that the Long/Short ratio for LINK is currently at 1.031, signaling a bullish sentiment among traders. Moreover, the positive LINK OI-weighted funding rate of 0.0087% further supports the optimistic outlook.
However, the stagnant future open interest for LINK over the past day suggests that traders are hesitant to liquidate or enter new positions, possibly in anticipation of a market correction.
Coinglass statistics highlight the major liquidation levels for LINK at $12.12 and $13.16, indicating that traders are heavily leveraged at these price points. As of the latest data, Chainlink is trading around $12.65, reflecting a modest 1.2% increase in the past 24 hours. Additionally, a 25% drop in trading volume suggests reduced engagement from traders and investors.