- Chainlink could hit $33 if it sustains to break and stay above the triangle pattern.
- Open Interest breakout, but the bid-ask delta showed an increase in sell orders recently.
As a seasoned crypto investor with battle scars from more than a few market cycles, I’ve learned to read charts like some people read tea leaves. The ascending triangle pattern on Chainlink [LINK] is a clear bullish sign, but the recent increase in sell orders warrants caution.
It appears that Chainlink (LINK) has developed an upward sloping triangle formation, hinting at the possibility of further bullish movement ahead.
As a crypto investor, I’ve noticed a trend where buyers seem to be acting more assertively than sellers. They’re not shying away from purchasing LINK even during its dips, suggesting they’re comfortable with paying higher prices.
At approximately $27, the resistance point may play a crucial role. If we surpass this level, it would suggest a strong bullish trend has begun.
The rising trading volumes during price surges in the volume profile suggest a possible breakout, indicating substantial buyer enthusiasm.
The Moving Average Convergence Divergence (MACD) was close to the zero mark, suggesting a possible uptrend if it surpasses this point.
Moreover, with the Relative Strength Index (RSI) standing at a balanced 52.50, it indicates that there’s potential for further price growth in Chainlink before it reaches the ‘overbought’ technical level.
If the price surpasses the upper boundary (resistance line) of the triangle shape on the chart, it might predict an approximate target price of around $33. This projection is calculated by taking the height of the triangle and adding it to the breakout price.
This could mean a profit increase of more than 30% above the current value, mirroring the optimistic outlook in the market as suggested by its recent price movements.
This rally is quite important as it underscores the persisting buyer enthusiasm towards LINK and the faith they have in its underlying values.
LINK’s Open Interest and bid-ask delta
Looking at the Open Interest, it was observed by AMBCrypto that LINK’s recent price fluctuations have been accompanied by a notable period of consolidation.
As an analyst, I observed a significant rise in the quantity of unsettled derivative contracts still pending.
This trend often signals increasing enthusiasm among traders, potentially foreshadowing market turbulence due to the expanding size of positions and the rising number of traders wagering on the anticipated shifts in the price of LINK.
However, a look at the aggregated futures bid & ask delta revealed a contrasting narrative.
Over the past five days, the gap between buy and sell orders, as represented by the delta, significantly increased, indicating a surge in sell orders.
As someone who has been actively trading for several years now, I have come to recognize patterns that can suggest certain trends in the market. An increase in sell orders could indicate a few things based on my experience. It could mean that traders are cashing out after recent price increases, as they believe they’ve made a profit and want to secure their gains. On the other hand, it might also signal that some traders are anticipating a potential downturn, selling off in hopes of buying back later at a lower price. This is often referred to as “selling high and buying low,” which is a common strategy among experienced traders. However, this is just one interpretation, as market behavior can be complex and influenced by numerous factors.
When more sell orders are being made than buy orders, it frequently leads to a decrease in price, but if there’s enough demand from buyers to purchase what’s being sold, the impact on the price can be lessened or even reversed.
Read Chainlink’s [LINK] Price Prediction 2024–2025
The combination of increasing open interest together with a low difference between bids and asks indicates that the market is facing a crucial decision point.
Pay close attention to these indicators because they might suggest an upcoming market turbulence. If selling activity persists and exceeds buying activity, it may lead to a decrease in LINK’s price value.
Read More
- The Masked Singer Christmas special line-up – who are the characters?
- Polygon: Analyzing the impact of derivatives on its price momentum
- Central Bank of Iran promises CBDC launch, fintech to fight sanctions
- TNSR PREDICTION. TNSR cryptocurrency
- CRV PREDICTION. CRV cryptocurrency
- CTK PREDICTION. CTK cryptocurrency
- ZIG PREDICTION. ZIG cryptocurrency
- OM PREDICTION. OM cryptocurrency
- BDX PREDICTION. BDX cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
2024-12-10 09:44