Chainlink price consolidate at $13 after a considerable bullish move as traders look at the potential for the coin to break above the resistance level of $13.68, amid ongoing derivatives trading at higher volumes.
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As of writing, the Chainlink price is at $12.963, indicating that there has been a fall of 2.04% from its value 24 hours ago.
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What Does the Chainlink Price Chart Show?
TradingView shows that LINK has already broken out of the resistance at $10.007 and is currently making a run towards $13.68. Despite the current dip, the price is still well above its 50-day simple moving average of $9.041 and 200-day simple moving average of $9.788.
There is no doubt that $10.007 has become an important level to look out for. Holding above this level will continue the breakout trend, while a dip below it could weaken the breakout and turn the level into a potential resistance area.
The MACD remains positive, where the MACD line stands at 0.774 against the signal line at 0.704. The histogram reads 0.071 and indicates that there is still positive momentum even with the current selling pressure in LINK.
The indicators point out that the current retracement does not reverse the main trend. However, market players will need a sustained rally above $13.68 to confirm further upside momentum.
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How Does Chainlink Open Interest Affect LINK Price?
According to CoinGlass data, the increase in open interest for Chainlink (LINK) has been significant amid its recent gains in price. As of September 6, the open interest had risen to nearly $750 million.
High open interest could help push the price up further should the price continue moving upwards, but it could also add to volatility should LINK undergo a reversal in its price action.
What Did Chainlink Say About Digital Finance?
“Global liquidity” and “Seamless connectivity” were the focus in the X post from Chainlink. The post highlights the role of Chainlink as an interoperability standard for digital finance, describing it as “The interoperability standard for digital finance.”
This adds a fundamental narrative to the current price movement, as the post focuses on Chainlink’s role in connecting blockchain networks with financial systems.
Also Read: Chainlink Links 10 Networks to Official US Economic Data
Can Chainlink Price Break Above $13.68?
The volume statistics on CoinGlass reveal increased volumes as trading volume reaches $800 million on September 6. A breakout above $13.68, coupled with high volume, will strengthen the bullish setup.
The combination of rising volume and open interest shows that market activity has increased alongside the recent LINK rally. Still, the price needs to sustain its move above $13.68 to provide stronger confirmation of the bullish trend.
What Should Chainlink Price Traders Watch Next?
The confirmation level of LINK for now stands at $13.68, while the important downside level is $10.007. If LINK remains above $10.007, the recent breakout structure remains intact, while a move below this level could weaken the bullish setup.
The crypto market continues to experience notable volatility; hence, investors need to keep track of price movement, market sentiments, and future catalysts before investing.
Also Read: Chainlink’s LINK Price Eyes Breakout Toward $15 as Bullish Pennant Forms
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
