Chainlink (LINK) has recently surged towards a key resistance level, signaling potential bullish momentum in the cryptocurrency market.
Following a strong recovery from the $10 level, LINK has gained more than 74% in just three weeks, suggesting strong market interest and solid technical indicators.
According to COINOTAG data, investors are moving into long positions, indicating optimism for the continuation of LINK’s price action.
Chainlink Heads Towards $18 Resistance Level
Price action over the past few weeks suggests that Chainlink is forming a clear uptrend, making higher highs and lows. LINK is currently testing a key resistance level at $18.7. If the price can break through this level, it could signal the start of a sustained uptrend, with targets near $20. LINK is currently trading at $17.87, and is making a brief correction as it approaches the resistance level.
Technical indicators, the Relative Strength Index (RSI) is at 65.95, creating a mixed market environment. This indicates that the uptrend continues, but the overbought zone is also approaching. If LINK breaks above the RSI level of 70, the probability of the uptrend continuing increases. However, if the RSI falls below 70, this could be a sign of a consolidation period.
Currently, LINK’s trading volume has decreased by 17.67%, indicating that traders are cautious at the resistance level. Open Interest has also decreased slightly by 0.6%. This indicates that investors are carefully reviewing their positions and are moving towards long positions on exchanges such as Binance and OKX. The long/short ratios on these platforms show that bullish sentiment is dominant.
While the balanced long/short position situation of 0.9474 seen especially on stock exchanges indicates a mixed market sentiment, a strong tendency towards long positions on some platforms is striking. While traders act with caution, following Bitcoin price and general market trends is critical to determining the future direction of LINK.