- LINK’s Open Interest (OI) jumped 9.5%, indicating growing trader interest in the asset.
- The main liquidation levels were $13.55 and $14.40, with traders overleveraged at these levels.
The prevailing sentiment in the crypto market currently seems quite unpredictable due to high volatility. Amid such uncertainty, Chainlink (LINK) has formed a bullish price action pattern on its daily chart, with the altcoin now poised for a notable bullish rally.
In addition to the crypto’s bullish price action, on-chain metrics and positive market sentiment have also supported LINK’s bullish outlook.
Technical analysis and key levels
According to AMBCrypto’s assessment, LINK has successfully retested the breakout level of the ascending triangle price action pattern. At the time of writing, it appeared to be moving in an upward direction.
Based on recent price action and historical momentum, there could be a strong possibility that LINK will surge 35% to reach the $19 level in the coming days.
Source: TradingView
At the time of writing, LINK was trading above the 200-day exponential moving average (EMA) on the daily time frame, indicating a bullish trend. Additionally, the asset’s Relative Strength Index (RSI) indicated potential bullish momentum in the coming days.
On-chain bullish metrics
Aside from technical analysis, on-chain metrics also supported LINK’s bullish outlook. In fact, according to on-chain analytics firm Coinglass, LINK’s open interest (OI) jumped 9.5% in the last 24 hours, and the same continues to climb as well.
Source: Coinglass
The rise in OI can be interpreted as a sign of growing trader interest in the asset and an increase in open positions.
Main liquidation levels
At press time, the main liquidation levels were $13.55 at the lower level and $14.40 at the upper level, with traders overleveraged at these levels.
If sentiment remains unchanged and the price rises to the $14.40 level, nearly $2.44 million worth of short positions will be liquidated. Conversely, if sentiment changes and the price falls to the $13.55 level, nearly $5.10 million of long positions will be liquidated.
A combination of these on-chain metrics and technical analysis suggests that bulls are dominating the asset. This could help LINK reach the expected level in the coming days.
