Amid the ongoing price corrections in the crypto market, Chainlink (LINK) has recently experienced a breakout of bullish price action patterns and is now poised for a significant rally. Despite LINK’s bullish outlook, major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) are struggling to gain momentum.
Chainlink (LINK) Technical Analysis and Upcoming Levels
According to expert technical analysis, LINK appears bullish and broke out of the bullish double bottom price action pattern on September 28, 2024. In trading, this pattern is considered a bullish signal, and traders often prefer to go long after the breakout.
Based on the historical price momentum, if LINK closes its daily candle above the $12.90 level, there is a strong possibility that it could rise 15% to reach the $15 level in the coming days.
Bullish on-chain metrics
This positive outlook for LINK is further supported by on-chain metrics. According to the on-chain analytics company Mint glassLINK’s Long/Short ratio currently stands at 1.031, indicating bullish sentiment among traders. Furthermore, future open interest has increased by 2.5%, indicating increasing interest from traders following the bullish breakout.
Currently, 51.02% of top traders have long positions, while 48.98% have short positions.
Data from IntoTheBlock shows that the number of large LINK transactions has steadily increased, along with the LINK price, over the past seven days, indicating increased whale activity.
LINK Current Price Momentum
At the time of writing, LINK is trading around $12.93 and has experienced a price increase of over 1.75% in the last 24 hours. Meanwhile, trading volume has fallen by 18% over the same period, indicating lower participation from traders and investors due to price corrections.
This bullish thesis will only hold if LINK closes its daily candle above the $12.90 level, otherwise it could fail.