- At the time of writing, LINK was exhibiting potential breakout patterns backed by positive technical signals.
- A decline in exchange reserves, along with long liquidations, underscored a robust bullish sentiment.
Chainlink [LINK] has recently made notable advancements, driven by technological enhancements and marked improvements in market performance. Following the rollout of CCIP Private Transactions for financial institutions and its integration with Bitcoin, Chainlink is establishing itself as a frontrunner in cross-chain tokenized asset settlements.
Thanks to ANZ’s pilot project and an AI-infused initiative aimed at processing unstructured financial data, LINK has experienced a 4.46% price increase within the past 24 hours. Trading at $11.79 as of this writing, LINK is nearing a significant resistance threshold.
The pressing inquiry is—can this momentum elevate it to unprecedented heights?
Is LINK poised for a breakout?
LINK’s technical analysis displayed a symmetrical triangle pattern that has been tightening since mid-July. At the time of writing, LINK was trading close to the upper edge of this triangle at $11.77. Furthermore, the Relative Strength Index (RSI) measured at 54.98, indicating a bullish advantage for LINK.
In addition, the Moving Average Convergence Divergence (MACD) signaled a recent bullish crossover, suggesting possible upward momentum. Thus, if LINK breaks past the triangle, its next target might be around the psychological barrier of $13.
Source: TradingView
Robust on-chain indicators reveal heightened usage
On-chain analytics illustrated a favorable outlook for Chainlink. Active addresses increased by 1.11% over the past day, reaching 176.45k. This serves as an indicator of heightened interest and activity within the Chainlink ecosystem.
Furthermore, transaction numbers surged by 1.18%, bolstering the idea that more users are engaging with the platform’s decentralized services. Collectively, these signals bolster the bullish premise, emphasizing elevated network engagement.
Source: CryptoQuant
Declining LINK exchange reserves signal supply constraints
Notably, LINK’s exchange reserves have decreased by 0.27% over the past week, now standing at 163.97 million tokens. This reduction indicates that investors are withdrawing their assets from exchanges to personal wallets.
Such moves may reflect reduced selling pressure, potentially leading to price increases if demand continues to rise.
Source: CryptoQuant
Long liquidations further fuel bullish prospects
Another element contributing to LINK’s upward trajectory is the disparity between long and short liquidations.
Current data shows that $185.22k in long positions were liquidated compared to $131.73k in short positions. This preference for long liquidations highlights trader confidence in an upward move—propelling LINK’s price breakout.
Source: Coinglass
Is your portfolio in the green? Explore the LINK Profit Calculator
Currently, Chainlink appears excellently positioned for a breakout, supported by growing network activity, diminishing exchange reserves, and an optimistic market outlook.
If it manages to breach the $12 mark, it could swiftly aim for higher resistance levels. That said, traders should exercise caution, as the $12 resistance could trigger a pullback before additional gains.
