The News Crypto -
- LINK price rises in 24 hours, aiming to reclaim $12 level.
- Increasing Open Interest and large transactions suggest growing market interest.
- Potential V-shaped recovery forming, with $14.82 as bullish target and $10.05 as bearish support.
Chainlink (LINK) has embarked on a promising recovery trajectory, with its price showing a increase over the past 24 hours as it sets its sights on reclaiming the $12 threshold.
This resurgence comes on the heels of a dip below $10 just days ago, offering renewed hope to investors in the 14th most valuable cryptocurrency by market capitalization.
A key factor underpinning LINK’s recent upswing is the notable increase in Open Interest (OI). This metric, which tracks the number of active contracts tied to the cryptocurrency, serves as a barometer for market engagement and liquidity.
The simultaneous rise in both OI and price presents a bullish scenario, as it typically indicates sustained momentum in the current trend direction.
Source: Santiment
Chainlink witnesses surge in large transactions
Complementing the OI data, Chainlink has witnessed a surge in large transactions since September 5, suggesting enhanced liquidity and potentially growing demand for the asset.
While spikes in large transactions can sometimes signal selling pressure during price declines, in LINK’s case, this uptick aligns with the price increase, potentially reinforcing the ongoing uptrend.
From a technical analysis perspective, LINK’s price action paints an intriguing picture. Currently trading at $10.36, the cryptocurrency appears to be forming a V-shaped recovery pattern on its daily chart. This formation, characterized by a sharp rebound following a steep decline, began after LINK found support at $9.57 on September 8.
The Relative Strength Index (RSI), a key momentum indicator, is approaching the neutral 50.00 level. A breach above this threshold could confirm the bullish outlook, potentially propelling LINK towards the neckline of the V-shaped pattern at $12.34. In a highly optimistic scenario, Chainlink’s price could extend its rally towards $14.82.
This content was originally published on The News Crypto
