Amid ongoing price corrections across cryptocurrency markets, Chainlink (LINK) recently experienced a breakout of a bullish price action pattern and is now poised for a significant upside. Despite LINK’s optimistic outlook, major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are struggling to gain momentum.
Chainlink (LINK) Technical Analysis and Future Levels
According to expert technical analysis, LINK appears to be bullish and has broken out of a bullish double bottom price action pattern as of September 28, 2024. In trading, this pattern is considered a bullish signal and traders often prefer to buy after a breakout.
Based on historical price momentum, if LINK closes the daily candle above the $12.90 level, it is likely to surge 15% and reach the $15 level in the next few days.
Bullish On-Chain Indicators
This positive outlook for LINK is further supported by on-chain indicators. According to on-chain analytics firm Coinglass, LINK’s long/short ratio is currently at 1.031, indicating optimism among traders. Additionally, future open interest increased by 2.5%, indicating growing interest from traders following the bullish breakout.
Currently, 51.02% of top traders hold buy positions, while 48.98% have sell positions.
Data from IntoTheBlock shows that the number of large LINK transactions has steadily increased along with LINK price over the past seven 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, trading volume fell 18% during the same period, suggesting that the price correction has reduced participation from traders and investors.
This bullish argument will only hold if LINK closes the daily candle above the $12.90 level, otherwise it may fail.