[Chainlink (LINK) Targets $20 As Funding Rates Bullish]
Chainlink (LINK) has performed well since the beginning of the year, doubling in value. In recent hours, the crypto asset hit a new yearly high of $17, its highest level since April 2022.
The rising price of LINK signals that investors may have more good news, with multiple indicators pointing to continued growth in demand for the asset.
In addition to the current bullish momentum, several other indicators are supporting LINK's growth. First, Chainlink’s newly launched v.0.2 community staking pool received an overwhelming response, with a total of 40,875,000 LINK locked.
This shows continued interest in LINK ahead of v.0.2 staking opening to general users on December 11. As LINK holders prepare for this critical event, the price of LINK is likely to increase even further.
Another indicator that is favorable for LINK price is the positive funding rate on the trading platform. It is worth mentioning that the LINK/USDT perpetual contract funding rate on the Binance platform recently increased to 0.0658%.
A positive funding rate means that traders with long positions pay interest to those with short positions to maintain their positions in anticipation that the price will rise. This trend shows that traders are willing to pay interest to ensure not to miss out on any possible LINK price increases.
Meanwhile, open interest in the asset has increased by 28% during that time, with over 65% of traders holding long positions. Overall, trading sentiment for LINK and the broader crypto market remains bullish, setting the stage for further growth in LINK’s future.
