Analysis shows that Chainlink (LINK) has formed a distinct ascending triangle pattern, indicating potential for further bullish momentum.
This pattern reflects a situation where buyers are more active than sellers, displaying a willingness to purchase at higher prices following each LINK price drop.
A crucial point to watch is the resistance level at approximately $27, which, if surpassed, could signal a breakout favoring the bulls.
Supporting this potential breakout is the volume profile, which has shown an uptick in trading volume during upward movements, indicating strong buyer enthusiasm.
Furthermore, the MACD is currently near the zero line, suggesting the possibility of an upward trend if it crosses above.
Moreover, the Relative Strength Index (RSI) sits at a neutral 52.50, indicating room for further price growth before reaching overbought territory.
If a successful breakout occurs above the triangle pattern’s resistance line, a target price of around $33 can be forecasted by measuring the triangle’s height and adding it to the breakout point.
This potential increase of over 30% from the current price level aligns with the overall optimistic market sentiment, as evidenced by recent price movements.
Such a surge would carry significance, underscoring the sustained interest from buyers and their trust in LINK’s underlying fundamentals.
Insights on LINK’s Open Interest and bid-ask delta
An analysis of Open Interest by CryptoCrypto reveals a notable consolidation phase coinciding with LINK’s recent performance.
This metric, representing the total number of derivative contracts outstanding and unsettled, has observed a considerable rise, indicating increasing trader interest and potentially signaling upcoming price volatility due to larger positions taken by a broader range of traders.
In contrast, the analysis of the aggregated futures bid & ask delta presents a different picture.
The delta, which gauges the net variance between buy and sell orders, highlights a significant increase in sell orders over the past five days.
This surge in sell orders may indicate traders capitalizing on recent price gains or preparing for a potential downturn in LINK’s value.
An abundance of sell orders typically exerts downward pressure on prices, unless matched by strong buying interest to counterbalance the selling pressure.
The juxtaposition of growing open interest with a negative bid & ask delta indicates a pivotal moment for the market.
Traders are advised to closely monitor these metrics, as they could hint at imminent volatility, potentially leading to a decline in LINK prices if sell-side activity continues to outweigh buying interest.