Is Chainlink (LINK) $12 Breakout Imminent? Data Reveals A Rising Open Interest
September 11 2024 - 4:30PM
NEWSBTC
Chainlink is in a consolidation phase after weeks of volatility and
selling pressure. The price currently holds above a support level
of $10, a crucial liquidity level. The altcoin attracts the
attention of analysts and investors who anticipate higher prices
soon. Related Reading: Solana (SOL) Surges Past $130
Resistance As Funding Rate Signals Bullish Momentum Data from
Santiment reveals rising open interest, which signals sustained
demand for Chainlink. As more traders and investors build
positions, this increase in open interest suggests that a price
rally could be on the horizon. This stabilization around the $10
mark has given some confidence to those who believe LINK may be
poised for a breakout. Many analysts see this as a potential
turning point for Chainlink, with its current price action
reflecting growing optimism for future gains. If the consolidation
holds and momentum builds, LINK could potentially push past its
recent resistance and aim for higher levels. Chainlink Investors
Showing Confidence Chainlink is testing key supply at its
current levels, and top traders and investors are confident in a
potential rise for LINK in the coming weeks. One significant
indicator signaling strength is the rising Open Interest (OI), as
revealed by Santiment. OI tracks the number of active contracts
tied to a cryptocurrency, serving as a reflection of market
engagement. When OI increases, it signals growing liquidity and
interest in the market, while a decrease in OI typically points to
reduced exposure. From a price analysis perspective, a rise in OI
combined with a price dip often confirms a continuing downtrend. On
the other hand, if OI decreases while the price rises, it may
signal a bearish reversal. In Chainlink’s case, both OI and price
are increasing, which suggests that the current uptrend could
persist. As investors monitor the market, many are waiting for
price confirmation above current levels to keep the momentum going
and shift the overall negative sentiment that has clouded Chainlink
in recent weeks. Related Reading: Cardano (ADA) Rally Brewing?
On-Chain Metrics Suggest Investors Optimism LINK’s breakout could
fuel a bullish run, as traders expect a more bullish trajectory in
the short term. The rising OI serves as a strong indicator that
market participants are increasingly confident in LINK’s potential
for further gains. LINK Price Testing Supply At $10.8 Chainlink
(LINK) is trading at $10.40 after testing local resistance at
$10.83, positioning for a potential breakout toward higher prices.
The price is struggling to clear the 4-hour 200 moving average (MA)
at $10.71, a key indicator that has acted as a resistance since
late August. For bulls to maintain momentum, LINK must reclaim the
4H 200 MA and target the next resistance at $12.70. Breaking past
this level would signal a reversal and could lead to a more
sustained uptrend, offering investors hope for further gains.
However, if LINK fails to break through the 4H 200 MA, the altcoin
will likely face a pullback, with support anticipated at lower
demand levels around $9.30. A failure to hold this support could
result in even lower prices, reinforcing the downside risk for
traders. Related Reading: Avalanche (AVAX) Ready To Target $28:
Investors Expect A Reversal The coming days will be crucial for
LINK’s price trajectory as the battle between bulls and bears
intensifies. Featured image from Dall-E, chart from TradingView
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