- Chainlink can reach $33 per meter if the pattern is not broken and it stays above.
- The bid-ask differential showed an increase of recent sell orders.
Chainlink [LINK] The triangle formed an ascending pattern that suggests a possible continuation of bullish momentum.
This pattern indicates that buyers are more aggressive in their buying than sellers. They’re willing and able to pay higher prices for each LINK decline.
This resistance level, which is around $27, could prove decisive. Breaking above it could signal a bullish break.
Trading volumes increased in the upward swings, indicating strong buyers’ interest.
MACD hovered near the zero line and indicated potential upward movement, should it cross 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.’
If you successfully break above the resistance of the Triangle pattern, the price could be projected to around $33 based on the triangle height plus the breakout point.
The recent price movements reflect the bullish market sentiment.
This rally is significant as it confirms the continued interest of buyers and market confidence that LINK has.
Open interest and bid-ask Delta for LINK
AMBCrypto noted that the recent price movement of LINK coincided nicely with a large consolidation in Open Interest.
There was a significant increase in the number of unresolved derivative contracts.
The positions are larger, and there is a greater number of traders betting on the future movements in price.
Coinglass
However, a look at the aggregated futures bid & ask delta revealed a contrasting narrative.
The delta, which measures the difference in net buy-and-sell orders, revealed that the number of sell orders increased significantly over the past five days.
It is possible that the increase in selling orders was due to traders either making profits on recent price rises or anticipating an economic downturn.
If there are more sell orders than buy, the prices will often fall unless the buying is strong enough to offset the selling.
Click Here to 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 are advised to monitor these indicators as they may indicate upcoming volatility. The LINK price could be pushed downward if there is a continued sell-side outweighting the buy-side.
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Source: ambcrypto.com
