|
Getting your Trinity Audio player ready...
|
Key Takeaways:
- LINK has bounced above $12.50 support with increased buy-side pressure.
- Derivatives markets show strong bullish bias with growing volume and open interest.
- On-chain activity reflects cautious optimism, driven largely by whale accumulation.
Chainlink’s native token, LINK, is showing renewed strength after bouncing off the lower boundary of a long-term ascending parallel channel. Now trading around $13.50, LINK has reestablished itself above the key $12.50 support level—historically a springboard for upward price momentum.
Recent technical and on-chain data suggest rising investor confidence, with signs pointing toward a potential retest of the $18 mid-channel resistance if current trends hold.
Spot Market Buyers Dominate as LINK Holds Support
The Spot Taker Cumulative Volume Delta (CVD) over the past 90 days shows consistent buy-side dominance, especially during consolidation periods. This pattern indicates that aggressive buyers are stepping in, reinforcing bullish sentiment.
As long as LINK maintains levels above the $12.50 support, the bullish momentum may remain intact. Accumulation near current price zones suggests that smart money could be positioning ahead of a possible breakout—making spot market strength a key factor to monitor.
On-Chain Metrics Signal Subtle but Steady Growth
According to IntoTheBlock, Chainlink’s active address count rose 6.42%, even as new address creation dipped slightly by 2%. The increase in zero-balance addresses (up 11.68%) hints at wallet reallocation and possible strategic accumulation.
Transaction activity paints a mixed picture: while large transactions ($1M–$10M) spiked 81.82%, mid-range volume dropped significantly. This imbalance suggests that while whales are engaging, retail and mid-tier investors remain cautious.
Derivatives Data Reflects Strong Bullish Sentiment
Bullish sentiment is even more pronounced in the derivatives market. Trading volume surged by 40.49% to $1.18 billion, while Open Interest rose 11.60% to $738.51 million.
Also Read: Chainlink (LINK) Price Teeters on Key Support as Bearish Sentiment and Tariff Tensions Grow
Binance’s Long/Short Ratio currently stands at 2.16, with 68.32% of traders favoring long positions. This indicates that leveraged traders are increasingly confident in further LINK upside. When coupled with spot market strength, this could set the stage for a breakout toward the $18 resistance level.
Chainlink’s rebound from critical support, increasing taker demand, and strong derivatives interest all point to a potential rally continuation. Still, uneven on-chain participation and mid-tier investor hesitation may act as short-term friction.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
