Chainlink: how high can the bullish rally go?
Growing demand for Chainlink can extend bullish gains as buyers flip $6 resistance to support.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Increased buying pressure took LINK above $6 resistance.
- Open Interest rose along with prices, hinting at strong bullish resolve.
Chainlink’s [LINK] bullish position on the 12-hour timeframe extended its bounce from the $5 support level. The increased buying pressure over the weekend saw LINK flip the technical and psychological $6 level from resistance to support.
Read Chainlink’s [LINK] Price Prediction 2023-24
While bulls have been rallying, the price action suggested bears were still actively on the hunt for a price reversal. However, flipping the $6 level has given buyers a good chance of extending the rally, especially as Bitcoin [BTC] remained above $30k.
Rising demand could encourage more gains for bulls
The emergence of LINK from the year-low of $5 upon a retest took out major bearish roadblocks. A wave of successive bullish candles between 20 June to 22 June took LINK to the bearish trendline.
Although a brief pullback ensued, the strong buying power spurred LINK above the confluence of the bearish trendline and the $6 resistance level.
Looking ahead, a 3.24% increase in Chainlink’s market cap, per CoinMarketCap, could spur more bullish gains. An increasing market cap signifies good demand for a coin, which could cause higher prices.
The Relative Strength Indicator (RSI) highlighted the growing demand for LINK as it stood at the edge of the overbought zone with a reading of 70. The Moving Average Convergence Divergence (MACD) posted a bullish crossover on 15 June and has been on an uptrend above the zero mark.
LINK buyers can look to ride on further price gains for Bitcoin to establish a clear bullish trend. However, they will first need to successfully defend the $6 support zone.
How much are 1,10,100 LINKs worth today?
Market speculators buy into bullish intent
The Open Interest data from Coinalyze showed a consistent rise in open contracts for LINK since 15 June. It coincided with the MACD’s bullish crossover, hinting at buyers’ confidence in turning the bullish rally into a trend.
The OI-weighted Funding Rate has also been positive since 21 June, signaling strong bullish intentions. The rising metrics, along with price, puts buyers in good stead to advance LINK’s bullish rally.
