Chainlink is currently experiencing a consolidation phase after enduring weeks of volatility and selling pressure. At present, its price remains above a crucial support level of $10, a significant liquidity threshold. This stabilization has garnered the attention of analysts and investors who are optimistic about higher prices in the near future.
Data from Santiment indicates a rise in open interest, signaling sustained demand for Chainlink. As more traders and investors take positions, this increase in open interest suggests that a price rally could be imminent.
This stabilization around the $10 mark has given confidence to those who believe LINK may be poised for a breakout. Many analysts view this as a potential turning point for Chainlink, with its current price action reflecting growing optimism for future gains. If the consolidation phase holds and momentum builds, LINK could possibly surpass its recent resistance and target higher levels.
Chainlink is currently testing key supply at its current levels, and top traders and investors are optimistic about a potential rise for LINK in the coming weeks. One significant indicator of this strength is the rising open interest, as revealed by Santiment. Open interest tracks the number of active contracts tied to a cryptocurrency, serving as a reflection of market engagement. An increase in open interest signals growing liquidity and interest in the market, while a decrease typically points to reduced exposure.
From a price analysis perspective, a rise in open interest combined with a price dip often confirms a continuing downtrend. Conversely, if open interest decreases while the price rises, it may signal a bearish reversal. In Chainlink’s case, both open interest and price are increasing, suggesting that the current uptrend could persist. Investors are closely monitoring the market, waiting for price confirmation above current levels to sustain momentum and shift the overall negative sentiment that has surrounded Chainlink in recent weeks.
A breakout for LINK could fuel a bullish run, with traders anticipating a more positive trajectory in the short term. The rise in open interest is a strong indicator that market participants are increasingly confident in LINK’s potential for further gains.
Currently, Chainlink is trading at $10.40 after testing local resistance at $10.83, positioning for a potential breakout toward higher prices. The price is struggling to clear the 4-hour 200 moving average (MA) at $10.71, a key indicator that has acted as resistance since late August.
For bulls to maintain momentum, LINK must reclaim the 4-hour 200 MA and target the next resistance at $12.70. Breaking past this level would signal a reversal and could lead to a more sustained uptrend, offering investors hope for further gains.
However, if LINK fails to break through the 4-hour 200 MA, the altcoin will likely face a pullback, with support anticipated at lower demand levels around $9.30. A failure to hold this support could result in even lower prices, reinforcing the downside risk for traders.
The coming days will be crucial for LINK’s price trajectory as the battle between bulls and bears intensifies.
 stabilizes above $10, signaling potential breakout as open interest rises. Analysts optimistic about near-term gains.){kind=link}