Amidst the current market correction in the cryptocurrency space, Chainlink (LINK) has emerged as a standout performer with a breakout of bullish price action patterns, signaling a potential rally. While other major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are facing challenges in gaining momentum, LINK is showing promising signs of upward movement.
Technical analysis experts have noted that as of September 28, 2024, LINK has broken out from a bullish double-bottom price action pattern. This pattern is typically viewed as a bullish signal in trading, prompting traders to consider long positions following the breakout. The breakout is illustrated in the chart below:
If LINK manages to close its daily candle above the $12.90 level, there is a strong likelihood that it could see a 15% surge to reach the $15 level in the near future.
The positive outlook for LINK is further supported by on-chain metrics. Coinglass, an on-chain analytics firm, reports that LINK’s Long/Short ratio is currently at 1.031, indicating bullish sentiment among traders. Moreover, the future open interest for LINK has increased by 2.5%, signaling growing interest from traders following the bullish breakout.
Currently, 51.02% of top traders have long positions on LINK, while 48.98% hold short positions. Additionally, data from IntoTheBlock reveals a steady increase in the number of large LINK transactions over the past 7 days, aligning with the rising price of LINK and indicating heightened whale activity in the market.
As of the latest update, LINK is trading around $12.93 and has seen a price surge of over 1.75% in the last 24 hours. However, trading volume has decreased by 18% during the same period, suggesting decreased participation from traders and investors amid the ongoing price correction.
In order for the bullish thesis to remain valid, LINK must successfully close its daily candle above the $12.90 level. Failure to do so may result in a reversal of the current bullish momentum.
Overall, Chainlink’s recent breakout and positive on-chain metrics point towards a potential uptrend in the near future, offering traders and investors an opportunity to capitalize on the expected rally.