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Chainlink’s 20% pump over the past five days saw LINK emerge as one of the best-performing cryptocurrencies over the period.
This notable rise led LINK to reclaim the vital support level at $16.5 price level, offering a new opportunity for buyers to join the bullish pump.
Bullish Pressure Could See LINK Hit $20
Analyzing LINK’s price action on the daily and four-hour timeframes revealed a strong bullish outlook. The Relative Strength Index (RSI) was close to the overbought zone on both the four-hour and daily timeframes. This highlighted the dedicated buying pressure both by short-term and long-term buyers.
Similarly, the capital inflows on the daily timeframe registered a rapid surge from a negative reading of -0.13 to a positive reading of +0.10. This signaled a massive interest in LINK’s price action by medium to long-term buyers.
A strong bullish candle close on the daily timeframe above $16.5 will serve as an entry signal for new long positions. Profit targets will lie at $18 for 10% gains and $20 for 24% gains.
Positive Open Interest in Futures Market
In the futures market, the Open Interest was strongly positive with a 7.25% increase over the past 24 hours. This highlighted the bullish sentiment among market participants.
Furthermore, the Funding Rate was firmly in favor of buyers with significant positive rates on the lower and higher timeframes.
Despite the favorable bullish outlook of the trade setup, traders should exercise caution, as a break of the $16.5 support level with a strong bearish candle would invalidate the bullish setup.
Trade idea:
Entry: $16.7 (CMP)
Target: $18; $20
Stoploss: $15
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
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