Chainlink (LINK) Double-Bottom Breakout, Buy Signal or What?
Amid the ongoing price correction across the crypto market, Chainlink (LINK) has recently experienced significant price action patterns and is now poised for a significant rally. Despite LINK's optimism, major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) are struggling to gain momentum.
Chainlink (LINK) technical analysis and upcoming levels
According to professional technical analysis, LINK looks bullish and since September 28, 2024, it has broken out of a bullish double-bottom price action pattern. In trading, this pattern is considered a bullish sign, and traders often choose to go long following a breakout.
Based on historical price progress, if LINK closes its daily candle above the $12.90 level, there is a good chance that it will rise by 15% to reach the $15 level in the coming days.
Bullish On-Chain Indicators
This is further supported by chain measurements for LINK's positive outlook. According to on-chain analytics firm Coinglass, LINK's long/short ratio currently stands at 1.031, indicating bearish sentiment among traders. Additionally, futures open interest increased by 2.5%, indicating increasing demand from traders.
Currently, 51.02% of top traders hold long positions while 48.98% hold short positions.
Data from IntoTheBlock shows that over the past 7 days, the number of large LINK transactions has steadily increased along with the value of LINK, indicating an increase in whaling activity.
Current price momentum link
At press time, LINK is trading at around $12.93 and has experienced a price increase of over 1.75% in the last 24 hours. Meanwhile, the trading volume decreased by 18 percent, which indicates that the participation of traders and investors in price correction is low.
This breakout thesis will only hold if LINK closes the daily candle above the $12.90 level, otherwise it may fail.
