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Chainlink (LINK) Double Breakout, Buy Signal or What?

coinpedia.org 28 September 2024 23:50, UTC

Amid ongoing price correction across 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 as of September 28, 2024, it broke out from the bullish double-bottom price action pattern. In trading, this pattern is considered a bullish signal, and traders often prefer going long following the breakout.

Source: Trading View

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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 soar by 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 firm Coinglass, $LINK’s Long/Short ratio currently stands at 1.031, indicating bullish sentiment among traders. Additionally, its future open interest has increased by 2.5%, indicating rising interest from traders following the bullish breakout.

Currently, 51.02% of top traders hold long positions, while 48.98% hold short positions.

Data from IntoTheBlock shows that the number of large $LINK transactions has steadily increased along with the $LINK price in the past 7 days, indicating increased whale activity.

$LINK Current Price Momentum

At press time, $LINK is trading near $12.93 and has experienced a price surge of over 1.75% in the past 24 hours. Meanwhile, its trading volume has declined by 18% during the same time frame, indicating lower participation from traders and investors amid price correction.

This bullish thesis will only hold if $LINK closes its daily candle above the $12.90 level, otherwise, it may fail.

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