- Chainlink gains 3.34% weekly despite broader bearish sentiment.
- An inverse head and shoulders pattern signals a bullish reversal.
- RSI at 63.14 supports further upside potential.
- Open interest growth reflects rising trader confidence.
Chainlink (LINK) is showing resilience even as the wider crypto market remains bearish. The token has managed to sustain upward momentum; over the past week, it has gained 3.34%, and over the last 24 hours, LINK’s price has declined by 1.54%, demonstrating strength in a cautious trading environment.
At the time of writing, the token is trading at $25.56, supported by a 24-hour trading volume of $1.16 billion. However, this marks a 58.38% decline from the previous day, suggesting that while price holds steady, market participation has temporarily cooled.
The token’s market capitalization stands at $17.33 billion, placing it among the top altcoins. Despite the current market backdrop, the token continues to build a bullish narrative, strengthened by technical indicators and increasing investor confidence.
Also Read: Chainlink Faces Critical Resistance: Can LINK Rally to $45–$52 Next?
LINK Technical Breakout Confirms Bullish Setup
According to crypto analyst Rendoshi Ondomoto, Chainlink’s monthly chart shows a clear inverse head and shoulders formation, a classic reversal pattern. This structure emerged following a long decline from the token’s 2021 highs. The neckline, positioned around $22, has now been broken. The token currently trades at $25.46.
This breakout points to significant upside targets. The measured move suggests a price goal near $38.5, derived from the distance between the neckline and the head. A more ambitious projection extends toward $56, a level aligned with historical resistance last tested in the 2021 cycle. Such an overshoot remains possible, given the strong momentum often seen in bullish altcoin phases.
The RSI at 63.14 remains in a bullish range but doesn’t signal overbought conditions, which opens up room for continuation. The support at the $22 neckline is therefore indispensable. Acting above this level maintains the bullish argument, while any dip below potentially breaks up the bullish setup.
Open Interest Signals Market Confidence
Recent derivatives data adds weight to LINK’s bullish structure. Open interest has risen to $1.82 billion, up by 1.80%, which is indicative of rising inflows of capital. This gain leads us to believe that investors are confirming the breakout of the token with higher commitments.
The OI-weighted funding rate stands at 0.0187%, which suggests mildly bullish positioning among active contracts. Traditionally, such sentiments have been associated with upward market movements, further substantiating the current rally.
While growing open interest reflects optimism, it also highlights the possibility of greater volatility should sentiment reverse rapidly. Traders are likely to encounter larger price movements in either direction. Currently, market cues are supportive of further upside movement.
Also Read: Chainlink (LINK) breakout forms, bullish wedge signals $55 price target
