Chainlink (LINK) is attracting attention with a bullish momentum forming. Whales are accumulating, and technical indicators point towards a potential rally to $19. Find out why LINK could be on the verge of taking off.
On-chain data analysis reveals an increased demand for Chainlink among whale investors. While the LINK price has experienced a short-term decline, technical indicators and open interest in futures contracts suggest a return to bullish momentum in the coming weeks. Investors should keep a close watch for a breakthrough above the $14 level, which would pave the way for a test of $19.
Indeed, the Chainlink ecosystem has continued to expand in recent months, with increasing adoption by institutional investors. On-chain data shows that the volume of significant transactions on the network surged by over $348 billion in the past month. This sustained whale activity bodes well for a medium-term price rise of LINK.
Furthermore, the open interest in LINK futures contracts has gradually rebounded, reaching nearly $583 million at the time of writing. This increase in market derivative liquidity signals the return of strong bullish sentiment among investors. Many short stop losses are positioned between $19 and $23, indicating a potential “short hunt” in the days ahead.
Technically, the LINK price is currently forming a bullish continuation pattern on the 4-hour chart, characterized by a descending channel. Although the bullish breakout of this pattern is not yet confirmed, increasing buying pressure suggests an imminent breakthrough.
Moreover, LINK shows a strong positive correlation of 0.9 with Bitcoin over the last 30 days. Therefore, a decisive breakthrough and sustained move above $15 could propel LINK towards the next target of around $18 in the coming weeks.
Indeed, the mid-band resistance of the FBB (in pink) is at $18 and will be the crucial resistance in the coming weeks.
Currently, LINK has still not managed to break out of its daily Ichimoku cloud. The $15 resistance is even more crucial in the short term.
If LINK fails to rebound, it will likely seek a new low in the demand zone between $7.5 and $8.5 in the next few weeks.
LINK is at a crossroads, and its medium-term future will entirely depend on Bitcoin’s movements.
Fundamental and technical analysis suggests that the LINK price should regain ground in the near future, if Bitcoin allows. Informed investors should closely monitor LINK’s behavior around the $14 and $15 zone, which represents a pivotal level for future trends.
With a market trending upwards, LINK is expected to quickly challenge shorts beyond $18. To invest in one of the leading altcoins in the sector, here is a detailed guide to buy it on Bitget :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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