Donald Trump’s victory in the US presidential election has been the main catalyst, sparking bullish sentiment in the market as Bitcoin hits new daily all-time highs, recently reaching $76,203. Bitcoin’s rally has begun to spread to other cryptocurrencies, especially Chainlink (LINK), which is now showing signs of a bullish breakout. With renewed investor optimism, LINK could soon reach $40.
Chainlink (LINK) Sends Bullish Signals
LINK’s weekly chart is currently showing a “falling wedge” pattern, a pattern that often signals a potential uptrend. Meanwhile, LINK’s immediate resistance is located at the upper boundary of the wedge pattern, around $15, which is crucial for a breakout.
If Link continues to break above the resistance of the wedge, this could lead to a massive price move that could see it surge towards $40 in the coming days.
Is there buyer support behind Chainlink’s rally?
Chainlink (LINK) is showing signs of a possible breakout as buying pressure increases. On the four-hour chart, the relative strength index (RSI) recently reached 71, indicating strong buying momentum. This growth suggests that more traders are supporting LINK’s uptrend.
In the derivatives market, interest in LINK is also rising. Open interest jumped to $203 million and funding rates surged, indicating that traders are betting on Chainlink to rise further. With the support of buyers and traders, LINK may soon break through past resistance levels and set new highs.
Chainlink’s network activity surges
In addition to strong buyer momentum, Chainlink has also seen impressive growth in network activity. Chainlink is the top real-world asset (RWA) project by development activity.
Over the past 30 days, network development has surged by a staggering 14,000%. At the same time, active addresses on the Chainlink blockchain have also surged. In just four days, daily active addresses have increased from 1,930 to 2,750.
With buying pressure and network participation rising, LINK could be poised to continue rising.
