- Summary:
- By breaking below the $25.50, LINK price is signaling a potential bearish takeover. However, on-chain metrics offer reprieve. Which way LINK?
Chainlink (LINK) price has formed a double-top pattern on the two-hour chart, depicting a potential takeover by the sellers. Previously, the crypto coin has had a strong run in the last week, realizing gains of 38.8%.
LINK price nears breakout point on the double-bottom pattern
LINK price spiked to highs of $27.37, up by 4.1% on the daily chart, but declined sharply toward $25.50, which is the neckline of the double-top pattern. Notably, the $25.50 mark previously served as a key resistance level heading into the weekend. Therefore, LINK price is nearing an inflection point, below which it could turn bearish.
Institutional Partnerships support LINK Price
Chainlink has formed multiple institutional companies with reputable names, including UBS, BNP Paribas, Fidelity, etc. In the latest development, the decentralized oracle blockchain network Brazil’s Central Bank announced that it had selected Chainlink alongside Microsoft and 7COMm to develop a trade finance solution for Drex, the digital version of the country’s currency, the real.
The Chainlink ecosystem serves as a bridge between traditional financial markets and decentralized markets. It leverages blockchain technology and data processing through Oracle networks to deliver fast, secure, transparent and low-cost transactions across banking, asset tokenization, DeFi, insurance etc. All these are executed through smart contract environments, enabling trustlessness and efficiency in transaction processing.
By offering enterprises a seamless integration of blockchain technology into their operations, Chainlink is exponentially expanding use cases for its native token LINK. With increased adoption comes increased demand, which favors the upside for LINK price.
On-chain metrics call for further upside
On the downside, however, LINK price is supported by on-chain metrics. According to Coinanalyze data, the asset’s Long/Short ratio stood at 3.01 in the 24 hours preceding this writing. Long/short ratio measures the balance of long positions against short positions. A figure above one generally signals bullishness.
Also, Coinglass reports that LINK’s Open Interest rose by 6.4% to $749 million value in the last 24 hours. That also signals strong demand for the token, which could add fuel to the upside. However, as the crypto market is strongly tethered to Bitcoin’s performance, a decline in BTC price could bring downward pressure on the LINK price.
LINK price prediction
Chainlink price could potentially reverse to the upside if action stays above the double-top neckline.
Pivot: LINK price pivots at $25.50. Action above that level will signal bullishness. Conversely, a break below it will favour the sellers.
Resistance: Immediate resistance will likely come at $26.35. However, a stronger upward momentum will break above that level and potentially test $26.83.
Support: The first support will likely be at $25.12. However, if the sellers extend their control, LINK price could break below that level and invalidate the upside narrative. Meanwhile, the resulting momentum could take the price lower and test $24.80.
