News
  • Zameer Attar
    author-profile

    Zameer Attar right arrow

    Author

    Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.

    • 1 minute read

    Chainlink (LINK) Double-Bottom Breakout, Buy Signal or What?

    Story Highlights
    • LINK could soar by 15% to reach the $15 level if it closes its daily candle above the $12.90 level.

    • LINKโ€™s Long/Short ratio currently stands at 1.031, indicating bullish sentiment among traders.

    • LINKโ€™s bullish outlook appears following the breakout from a bullish double-bottom price action pattern.

    Amid ongoing price correction across the crypto market, Chainlink (LINK) has recently experienced a breakout of bullish price action patterns and is now poised for a significant rally. Despite LINKโ€™s bullish outlook, major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are struggling to gain momentum. 

    According to expert technical analysis, LINK appears bullish and as of September 28, 2024, it broke out from the bullish double-bottom price action pattern. In trading, this pattern is considered a bullish signal, and traders often prefer going long following the breakout.

    Based on the historical price momentum, if LINK closes its daily candle above the $12.90 level, there is a strong possibility that it could soar by 15% to reach the $15 level in the coming days. 

    Bullish On-Chain Metrics

    This positive outlook for LINK is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, LINKโ€™s Long/Short ratio currently stands at 1.031, indicating bullish sentiment among traders. Additionally, its future open interest has increased by 2.5%, indicating rising interest from traders following the bullish breakout.

    Currently, 51.02% of top traders hold long positions, while 48.98% hold short positions. 

    Data from IntoTheBlock shows that the number of large LINK transactions has steadily increased along with the LINK price in the past 7 days, indicating increased whale activity. 

    At press time, LINK is trading near $12.93 and has experienced a price surge of over 1.75% in the past 24 hours. Meanwhile, its trading volume has declined by 18% during the same time frame, indicating lower participation from traders and investors amid price correction.

    This bullish thesis will only hold if LINK closes its daily candle above the $12.90 level, otherwise, it may fail.

    Show More

    Related Articles

    Back to top button