Chainlink price spiked on Monday, up by 17% at the time of writing to trade at $21.99. The session saw LINK price hit an eight-month high of $22.57, bringing its weekly gains to 21% . LINK has also gained 34 in the last month, affirming a bullish hold of the market.
The momentum on LINK price is likely to be sustained in the near-term, as key on-chain metrics provide traction. According to analytics site, Coinanalyze, crypto coin’s Open Interest has risen substantially in the last 24 hours, gaining 29.34% to stand $426 million. This signals rising investor in the asset, which favours the upside.
Also, Chainanalyze reports that LINK’s Long/Short ratio is at 2.29 as of four hours ago. Long/Short ratio is a metric that is calculated by dividing the value of open long positions by that of open short positions. A ratio above 1 signals more money inflows, which adds credence to the upside view.
Chainlink’s use in the DeFi sector has given it a vantage position after the total DeFi Total Value Locked rose by $10 billion to $126 billion in the last week. LINK powers the Chainlink ecosystem, which provides data feeds and acts as a bridge between smart contracts and real-world data via oracle systems. Therefore the uptick in DeFi will likely add fuel for LINK price.
The momentum on the LINK price signals a continuation of the upside. The coin pivots at $22.57, and the first resistance is likely to be at $23.15. However, if the buyers extend their control, LINKUSD could break above that level and test $23.50.
On the other hand, breaking below $22.57 will shift the momentum toward the downside. That could see the first support established at $22.30. However, extended bearishness could break below that level and invalidate the upside narrative. Also, that could also extend the decline to test $22.00.
This post was last modified on Dec 02, 2024, 19:01 GMT 19:01