Chainlink’s [LINK] recent price movement has formed a distinct ascending triangle pattern, indicating a likelihood of sustained bullish momentum.
This pattern suggests that buyers are displaying more aggression compared to sellers, demonstrated by their willingness to purchase at higher price levels during LINK’s downward movements.
The critical resistance point currently sits at approximately $27, and a successful breach above this level could signify a breakout in the bullish direction.
An increase in trading volumes during upward movements supports the potential breakout, indicating strong buyer engagement in the market.
The MACD indicator is on the verge of crossing above the zero line, hinting at a possible upward trend in the future.
Moreover, the Relative Strength Index (RSI) is at a neutral position of 52.50, suggesting that there is room for further upward movement in LINK’s price before reaching an ‘overbought’ status.
If a breakout above the triangle pattern’s resistance line occurs, a projected price target of around $33 is anticipated, calculated by adding the triangle’s height to the breakout point.
This projection signifies a potential increase of over 30% from the current price level, aligning with the prevailing bullish sentiment evident in recent market activities.
Such a rally would be substantial, affirming the strong interest from buyers and the overall market confidence in Chainlink’s fundamental value.
Examining LINK’s Open Interest and Bid-Ask Delta
A detailed analysis of the Open Interest by CryptoCrypto revealed a significant consolidation phase that correlated with Chainlink’s recent price fluctuations.
The total number of outstanding derivative contracts that remain unsettled has notably surged, indicating a growing interest from traders and potentially foreshadowing increased price volatility due to larger positions and more participants betting on LINK’s future price movements.
Conversely, a review of the aggregated futures bid & ask delta portrayed a different narrative.
The delta, which measures the net variance between buy and sell orders, illustrated a noticeable rise in sell orders over the past five days.
This uptick in sell orders could imply that traders are either capitalizing on recent price surges or anticipating a market downturn.
When sell orders outweigh buy orders, it usually exerts downward pressure on the price, unless there is substantial buying interest to absorb the selling pressure.
The juxtaposition of escalating open interest alongside a negative bid & ask delta suggests that the market is currently at a crucial juncture.
Traders are advised to monitor these indicators closely as they could signal imminent volatility, potentially leading to downward price pressure on Chainlink if the sell-side dominance persists.