Chainlink (LINK) has made significant waves as it breaks out of its pennant pattern, signaling a bullish trend in the market. According to analysis from Cryptonary, LINK’s recent surge could see it targeting the $17.75 mark, provided it successfully transforms the previous resistance level of $15.30 into solid support.
The technical analysis reveals that Chainlink has executed a flawless breakout from its pennant pattern, encountering resistance at $16.40. The critical factor for sustained upward momentum lies in the ability of LINK to hold the local support level at $15.30, which previously acted as a barrier.
Market experts are optimistic about LINK’s trajectory, emphasizing that as long as Bitcoin (BTC), the flagship cryptocurrency, maintains stability without any significant downturns, LINK is poised for further upside potential in the coming weeks. The coveted target of $17.75 remains on the radar, contingent on the prevailing market conditions.
Chainlink’s Crossroads, Caution Amidst Potential Gains
However, it is not without risks, as the report mentions that a breach below $14.80 would invalidate the bullish pattern, introducing an element of caution for investors. The importance of BTC’s stability is highlighted as a crucial factor in LINK’s potential ascent.
Delving into market mechanics, the report notes a surge in Open Interest to new local highs of $375 million. The OI-Weighted Funding Rate, exhibiting volatility akin to SOL, experienced a spike to 0.0511% in the early hours, subsequently settling at 0.0180%. This adjustment is seen as a positive development, restoring a healthier balance to the market after a period of overheating earlier in the day.
The Long/Short ratio, standing at 0.9666, suggests that more participants have entered short positions than long positions in the past 8 hours. However, Cryptonary’s analysis paints a favorable picture for LINK, emphasizing its resilience as a strong performer. The recent pullback and successful retest of $15.30 as new support, a previous local resistance, are viewed positively.
The outlook remains optimistic, with Chainlink’s potential major move anticipated to be an upward surge to $17.75, provided it surpasses the local resistance at $16.40. Nevertheless, the coming days will likely be crucial for LINK enthusiasts as the cryptocurrency aims for new heights in the ever-dynamic digital asset landscape.
Related Reading | Solana Co-Founder Anatoly Yakovenko Rejects “ETH-Killer” Label, Advocates For Cooperative Future With Ethereum