Introduction to the Bull Market
The crypto market is buzzing with excitement as we witness a potential bull market on the horizon. With the majority of cryptocurrencies showing promising signs, Chainlink (LINK) stands out as a particularly bullish asset. As of November 8, 2024, LINK is exhibiting a distinctive bullish price action pattern, indicating a possible breakout.
Chainlink (LINK) Technical Analysis and Key Levels
In the realm of technical analysis, Chainlink is creating waves with its bullish ascending triangle pattern on the daily time frame. This pattern is often considered a precursor to a breakout. Should LINK manage to rise and secure a daily candle close above the pivotal $13.10 mark, it could potentially surge by 18%, aiming for the $15 level in the near term.
Currently, LINK is trading above the 200 Exponential Moving Average (EMA) on the daily chart, a strong indicator of an ongoing uptrend. The 200 EMA serves as a crucial tool for traders and investors, helping them gauge the overall trend direction and make informed decisions.
However, it’s essential to note that LINK’s bullish momentum will remain valid only if it successfully closes above the $13.10 level. Failing to do so could invalidate the bullish thesis.
Bullish On-Chain Metrics
Delving deeper into on-chain metrics, there is substantial support for LINK’s bullish narrative. Insights from Coinglass reveal that LINK’s Long/Short ratio on Binance is currently at an impressive 2.10, reflecting strong bullish sentiment among traders.
Moreover, LINK’s open interest has experienced a significant uptick, rising by 7.9% over the past 24 hours and 2.5% over the last four hours. This upward trajectory in open interest is a clear indication of growing trader interest and the establishment of new positions in anticipation of a bullish move.
At present, a notable 73.02% of top traders are holding long positions, while 26.98% are short. This distribution underscores the prevailing bullish sentiment in the market.
Current Market Status
As of the latest update, LINK is trading close to $12.55, having experienced a robust price increase of over 4.36% in the past 24 hours. Despite this price surge, trading volume has decreased by 23%, suggesting that trader engagement has waned amidst the potential breakout scenario.
