- Chainlink could hit $33 if it sustains to break and stay above the triangle pattern.
- Open Interest breakout, but the bid-ask delta showed an increase in sell orders recently.
Chainlink [LINK] formed a clear ascending triangle pattern, suggesting potential continued bullish momentum.
The pattern indicated that buyers were more aggressive than sellers, as they’re willing to buy at higher prices with each LINK dip.
The resistance level at around $27 could be decisive, as a break above this level could confirm a bullish breakout.
The volume profile supported this potential breakout, as trading volumes have increased during the upswings, showing strong buyer interest.
The MACD hovered around the zero line, indicating potential for upward movement if it crosses above.
Source: Trading View
Additionally, the RSI at a neutral 52.50, suggesting there’s room for upward price movement before Chainlink becomes technically ‘overbought.’
A successful breakout above the resistance line of the triangle pattern could project a price target around $33, as measured by the height of the triangle added to the breakout point.
This represents a potential gain of over 30% from the current price level, aligning with the market’s bullish sentiment reflected in the recent price actions.
Such a rally would be significant, affirming the strength of ongoing buyer interest and market confidence in LINK’s fundamentals.
LINK’s Open Interest and bid-ask delta
Examining the Open Interest, AMBCrypto noticed a significant consolidation phase coinciding with LINK’s recent price movements.
This total number of outstanding derivative contracts that have not been settled, saw a marked increase.
This typically indicated a growing interest from traders and could be a precursor to price volatility as positions were larger and more traders were involved in betting on future price movements of LINK.
Source: Coinglass
However, a look at the aggregated futures bid & ask delta revealed a contrasting narrative.
The delta, which measured the net difference between the buy and sell orders, showed that sell orders ramped up notably over the last five days.
This increase in sell orders could suggest that traders were either taking profits after recent price increases or possibly anticipating a downturn.
When sell orders dominate, it often puts downward pressure on the price, unless there is sufficient buying interest to absorb the selling.
Read Chainlink’s [LINK] Price Prediction 2024–2025
The juxtaposition of rising open interest alongside a negative bid & ask delta suggested the market was at a crossroads.
Traders should watch these indicators closely as they could imply forthcoming volatility, with potential downward pressure on LINK prices if the sell-side continues to outweigh the buy-side.
