- Chainlink has formed a double-bottom pattern with a support level at $10, signaling a potential breakout if $18 is breached.
- Short-term holders are in profit as the 30-day MVRV ratio rises to 6%, suggesting strong near-term market sentiment.
- A $150 million increase in LINK open interest shows futures traders are positioning for a possible significant rally.
Chainlink (LINK) rose 5.3% to $14.06 on July 9, making it the top performer among the 15 largest cryptocurrencies by market cap. This increase is closely tied to heightened activity from short-term holders and emerging technical patterns pointing toward a potential price surge.
A double-bottom pattern has formed on Chainlink’s weekly chart, with bulls defending the $10 support level twice. This formation, considered an early-stage bullish signal, could push LINK to the $18 resistance level. A successful move above $18 may confirm the pattern and open the path for a significant rally.
Upside Target Points to Over 100% Growth Potential
Once LINK clears the resistance at the 18 zone and it trades there as support, this is likely to pave a path to a 126% increase to 32. Technical analysts recommend that it be among the critical upside price targets, backed by the rising buying demand and market momentum signals.
The stochastic RSI has also managed to move above the 50 level, indicating a positive momentum in favor of the bulls. In the meantime, the MACD indicator has rendered a buy signal. Provided that merchants follow this sign, then, with a probability, Chainlink may start to build higher highs within the next few weeks, strengthening the bullish mood.
Short-Term Holders Now in Profit, Boosting Sentiment
According to Santiment data, the 30-day Market Value to Realized Value (MVRV) ratio for Chainlink has climbed to 6%. This reflects a profitable period for those who entered the market in the past month. The profitability may enhance Chainlink’s appeal to new investors who seek to capitalize on upward trends.
According to the data provided by Coinglass, LINK futures open interest has increased to the tune of 150 million within a little over a week. This advance means that traders are gaining more exposure, as the traders are probably gambling on a breakout, given that the funding rate is positive. This increase in open interest normally leads to major price fluctuations.
The technical indicators are strong, short-term holders have increased their profitability, and the futures market interest is growing, which makes Chainlink ready to have an extended bounce. At the moment, LINK might experience a further increase within the realm of the $30-$32 range.
