It appears that the bull market has officially begun, as the majority of cryptocurrencies are on the verge of a breakout. Today, on November 8, 2024, Chainlink (LINK) looks bullish, having formed a bullish price action pattern and being on the verge of a breakout.
Chainlink (LINK) Technical Analysis and Key Levels
On a daily time frame, LINK has formed a bullish ascending triangle price action pattern and is on the verge of a breakout. Based on recent price action and historical momentum, if LINK price rises and closes a daily candle above the $13.10 level, there is a strong possibility it could soar by 18% to reach the $15 level in the coming day.
As of now, LINK is trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend. Traders and investors use the 200 EMA as a technical indicator to determine whether an asset is in an uptrend or a downtrend, and they react accordingly based on this analysis.
LINK’s bullish thesis will hold only if it closes a daily candle above the $13.10 level, otherwise, it may fail.
Bullish On-Chain Metrics
On-chain metrics further support LINK’s bullish outlook. According to the on-chain analytics firm Coinglass, LINK’s Long/Short ratio on Binance currently stands at 2.10, indicating a strong bullish sentiment among traders.
Additionally, its open interest has soared by 7.9% over the past 24 hours and 2.5% over the past four hours. This rising open interest indicates growing trader interest and an increase in positions amid a bullish outlook.
Currently, 73.02% of top traders hold long positions, while 26.98% hold short positions.
At press time, LINK is trading near $12.55, having experienced a price surge of over 4.36% in the past 24 hours. During the same period, its trading volume dropped by 23%, indicating lower trader participation amid a potential breakout.
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