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- Increased buying pressure took LINK above $6 resistance.
- Open Interest rose along with prices, indicating strong bullish determination.
Chain links [LINK] a bullish position on the 12-hour time frame extended the bounce from the $5 support level. Due to increased buying pressure over the weekend, LINK changed the technical and psychological $6 level from resistance to support.
Read Chainlink’s [LINK] Price Forecast 2023-24
As bulls rallied, the price action suggested that bears were still actively chasing a price reversal. However, the reversal of the $6 level has given buyers a good chance to extend the rally, especially as Bitcoin [BTC] stayed above $30k.
Rising demand could lead to more profit for bulls
Source: LINK/USDT in trade view
LINK’s rise from its year-to-date low of $5 after a retest cleared major bearish roadblocks. A wave of consecutive bullish candles between June 20 and June 22 brought LINK to the bearish trendline.
Although a brief pullback followed, strong buying power propelled LINK above the confluence of the bearish trendline and the $6 resistance level.
Looking ahead, a 3.24% increase in Chainlink’s market cap, per CoinMarketCap, could lead to more bullish gains. An increasing market capitalization indicates good demand for a coin, which can lead to higher prices.
The Relative Strength Indicator (RSI) highlighted the growing demand for LINK as it stood at the edge of the overbought zone with a reading of 70. The Moving Average Convergence Divergence (MACD) posted a bullish crossover on June 15 and is in an upward trend above the zero mark.
LINK buyers can watch for further price increases for Bitcoin to identify a clear bullish trend. However, they will have to successfully defend the $6 support zone first.
How much are 1.10.100 LINKs worth today?
Market speculators buy in bullish intent
Source: Coinalyse
The Open Interest data of Coin analysis showed a consistent increase in the number of open contracts for LINK since June 15. It coincided with the MACD’s bullish crossover, indicating buyer confidence to turn the bullish rally into a trend.
The OI-weighted funding rate is also positive since June 21, indicating strong bullish intent. The rising stats, along with the price, set buyers in good stead to fuel LINK’s bullish rally.
Source: Mint glass