Chainlink (LINK) has recently broken out of a bullish price pattern, indicating a potential rally in the near future. However, while LINK looks bullish, other major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are struggling to gain momentum.
Based on technical analysis, LINK’s breakout from a bullish double-bottom pattern on September 28, 2024, is considered a bullish signal. If the cryptocurrency closes its daily candle above the $12.90 level, there is a strong possibility of it reaching $15 in the coming days, representing a 15% increase.
On-chain metrics also support a positive outlook for LINK. The Long/Short ratio stands at 1.031, indicating bullish sentiment among traders, and the future open interest has increased by 2.5%, suggesting growing interest from traders following the breakout. Currently, 51.02% of top traders hold long positions, while 48.98% hold short positions. Additionally, whale activity has been on the rise, with an increase in the number of large LINK transactions in the past 7 days.
As of now, LINK is trading near $12.93, with a price surge of over 1.75% in the past 24 hours. However, the trading volume has declined by 18%, indicating lower participation from traders and investors during the ongoing price correction.
It is important to note that this bullish thesis for LINK will only hold if the cryptocurrency manages to close above the $12.90 level in its daily candle. Otherwise, the breakout may fail.