Chainlink (LINK) has started showing promising signs of recovery, aiming for a return to the $12 level after a notable 4.20% rise in the last 24 hours. This upward momentum comes after the cryptocurrency, currently ranked 14th in market value, dropped below $10 just days ago. With key market indicators flashing positive signals, Chainlink bulls are hoping to keep the momentum alive and avoid another dip.
Open Interest And Large Transactions Fuel Optimism
A crucial factor behind Chainlink’s recent surge is the increase in Open Interest (OI). OI measures the number of open contracts for a cryptocurrency, offering insights into market activity and liquidity. A rise in OI, alongside a price increase, often suggests a strengthening uptrend, as it reflects heightened market interest and increased liquidity. Conversely, declining OI during a price rise could hint at a bearish reversal.
In Chainlink’s case, the Open Interest is rising alongside the price, indicating a sustained uptrend. Additionally, large transactions have spiked since September 5, another positive sign. While a surge in large transactions during a price dip can indicate strong selling pressure, the current environment suggests that larger market players are increasing their exposure to LINK, adding momentum to the ongoing price rally.
LINK Price Prediction – Bulls Eye $12 Mark
Chainlink’s current price hovers around $10.74, a recovery driven by strong support at $10.05. According to technical analysis, LINK may be forming a V-shaped recovery—a sharp bounce following its recent dip to $9.57 on September 8. The V-shape pattern is considered a bullish signal, often indicating a rapid recovery after a period of decline.
Adding to the bullish case is Chainlink’s Relative Strength Index (RSI), a key momentum indicator. The RSI is approaching the neutral 50.00 level. A move above this line would further confirm the bullish outlook, potentially propelling LINK to the $12.34 mark, where the neckline of the V-shaped pattern lies. In an even more optimistic scenario, Chainlink could climb as high as $14.82, a target eyed by many traders.
Key Resistance Levels and Risks Ahead
Despite the encouraging indicators, Chainlink faces a critical resistance level at $10.75. This price point is where the token encountered rejection on August 8, making it a key barrier for the bulls. If they manage to break through this level, LINK could continue its journey toward $12 and beyond.
Also Read: Chainlink (LINK) Shows Signs of Recovery -Potential for 4x Gains?
However, failure to breach this resistance could result in a retracement, dragging the price back to $10.05. For now, all eyes are on Chainlink’s ability to maintain its upward momentum and push past the resistance that has held it back in the past.
With rising Open Interest and increased large transactions, Chainlink’s recovery seems poised to continue, provided the bulls can break through key resistance levels. If the momentum holds, LINK could reclaim the $12 mark in the near future. However, traders should remain cautious as any failure to sustain the rally could lead to a retracement. Whether Chainlink breaks out or faces another dip, the coming days will be crucial in determining its short-term trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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