- Chainlink jumps 48% in 9 days to $25.81 as exchange supply drops and token age declines.
- LINK forms cup-and-handle pattern; $28 resistance, $24-$25 crucial for momentum.
- $373K in longs vs $69K in shorts favor bulls; dip below $26 may spike volatility.
In the past nine days, the price of Chainlink (LINK) has risen by 48%, with the help of strong technical indicators and on-chain fundamentals. At press time, LINK was trading at $25.81 and had dipped by 3.22%. Reduced sell-off risks and the reactivation of dormant wallets have enhanced the activity on the token.
With LINK trading at exchanges down by 0.95% and tokens 6.3% younger on average, investors are confidently returning to the market. The sustainability of this rally is anchored on specific technical and sentimental conditions.
Source: X
LINK’s Price Action Shows Strength
Chainlink has been on an upward trend, with the price moving past several key levels, forming a cup-and-handle pattern on the daily chart. This bullish formation is usually followed by an increased price rise, with the next major hurdle at $28. A breakout above this level could push LINK to $30 or higher, cementing the bullish sentiment.
LINK is now finding support at around $24-$25, following a recent high of $27.21. It is important to sustain this support to sustain the growth trend. However, a break below these levels could lead to a downward correction toward $22, where another key support level is seen.
Source: TradingView
Technical Indicators Highlight Optimism
The RSI stands at 61.13 and is still in the bullish zone but not the overbought zone. This leaves room for potential gains before the rally becomes overstretched.
LINK is trading around the upper band of the Bollinger Bands, indicating high volatility. If the price stays at this level of trading, then it creates the possibility for another bullish trend. As pressure decreases, a drop toward the midline near the $22.61 level would be expected.
Source: TradingView
Liquidation Data Reflects Market Sentiment
The liquidation data points to a bullish sentiment with a long position at $373,450 and a short position at $69,550. This strong, long bias shows traders are still bullish about further price rises. However, the imbalance poses certain risks; an aggressive price fall could lead to a cascade of liquidations, increasing short-term fluctuations.
Source: Coinglass
Conclusion
The recent rise in Chainlink is supported by technicals and the bullish market sentiment. If LINK continues to find support above $26 and breaks through $28, the next target for the price could be $30 and higher. However, the traders should look for volatility from liquidation within the market. Whether Chainlink will be able to continue the growth in the near future will depend on the strength of the asset at key levels in the next few days.
