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Chainlink price goes higher than several major resistance levels, due to growing popularity of decentralized finance (DeFi), rising open interest, and increased trading volumes, which altogether contribute to a bullish bias for LINK.
Chainlink extended its latest positive trend and moved above several major resistance levels on the back of growing adoption of decentralized finance solutions.
At press time, Chainlink (LINK) is currently trading at $11.54, marking a 0.77% drop over the past 24 hours. However, the overall trend looks bullish despite this minor daily drop, due to LINK’s recovery from the $8 area.
Why Is Chainlink Price Above $11?
There has been news from Chainlink where the firm highlighted how its infrastructure powers major decentralized finance protocols through services such as price feeds, interoperability, and cross-chain communication.
The update emphasized Chainlink’s position across the DeFi ecosystem, stating that it powers approximately “70% of the global DeFi market” and supports major protocols including “Aave, Lido, Kamino, Compound, and Polymarket.” This has strengthened the adoption narrative around LINK among investors.
What Does the Chainlink Price Chart Show?
From the TradingView chart, it is clear that the LINK price broke above the resistance at around $8.10 and $9.35, which in the past prevented the price from rising.
After breaking through the $9.35 level, the price surged and reached a local high of around $12.50, before pulling back slightly. There was also a substantial rise in the On-Balance Volume (OBV) during the breakout period, showing that the buying pressure was associated with the price move and not low participation levels.
An increase in the OBV alongside an increase in the price is generally considered confirmation of underlying demand.
What Do Open Interest and Liquidations Reveal About Chainlink Price Momentum?
According to CoinGlass data, open interest for Chainlink grew from around $400 million in July to almost $700 million in August. In the meantime, trading volumes grew significantly during the recent rally, indicating stronger participation from derivatives traders.
Data from the latest liquidations also reveal significant short liquidations in LINK as it moved higher. This suggests that bearish traders were forced to close positions, adding momentum to the breakout.
What Should Traders Watch Next for Chainlink Price?
In terms of technical aspects, LINK still trades above its critical breakout levels of $8.10 and $9.35, which could support the continuation of the medium-term bullish trend.
Market players will probably look to see if LINK could form some kind of support above $11 and challenge the recently seen high of $12.50. Due to the inherent volatility in cryptocurrency markets, it will be wise for traders to watch price action, market sentiment, and catalysts before making any moves.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Source: www.tronweekly.com