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- Chainlink could reach $33 if it continues to break and stay above the triangle pattern.
- Open interest growing, but the bid-ask delta has recently shown an increase in sell orders.
Chainlink (LINK) has formed a clear ascending triangle pattern, suggesting continued upside potential.
The trend indicates that buyers were more aggressive than sellers, as they are willing to buy at higher prices whenever LINK falls.
The resistance level around $27 could be decisive, as a break above this level could confirm a bullish breakout.
The volume profile supported this potential breakout, as trading volumes increased during upswings, demonstrating strong buyer interest.
The MACD is oscillating around the zero line, indicating potential for upward movement if it moves above it.
Source: Commercial View
Additionally, the RSI at a neutral level of 52.50, suggesting that there is room for upward price movement before Chainlink becomes technically “overbought.”
A successful breakout above the triangle resistance line could project a price target around $33, as measured by the height of the triangle added to the breakout point.
This represents a potential gain of over 30% from the current price level, consistent with the bullish market sentiment reflected in recent price action.
Such a rally would be significant, affirming the strength of current buying interest and market confidence in LINK’s fundamentals.
LINK Open Interest and Buy-Sell Delta
When looking at open interest, AMBCrypto noticed a significant consolidation phase coinciding with LINK’s recent price movements.
This total number of outstanding derivative contracts that have not been settled has seen a marked increase.
This generally indicates growing interest from traders and could be a precursor to price volatility as positions were larger and more traders were involved in betting on LINK’s future price movements.
Source: Coinglass
However, an examination of the aggregate long-ask delta of futures contracts revealed a contrasting story.
Delta, which measured the net difference between buy and sell orders, showed that sell orders increased significantly over the past five days.
This increase in sell orders could suggest that traders were taking profits after recent price increases or possibly anticipating a slowdown.
When sell orders dominate, this often puts downward pressure on the price unless there is enough buying interest to absorb the selling.
Read Chainlink (LINK) Price Prediction 2024-2025
The juxtaposition of increasing open interest and negative bid-ask delta suggested the market was at a crossroads.
Traders should monitor these indicators closely as they could imply upcoming volatility, with potential downward pressure on LINK prices if the sell side continues to outweigh the buy side.
