The Chainlink (LINK) market is showing active changes, such as increased trading volumes and bullish sentiment among traders, which may lead to a breakout.
Technical Analysis and Market Structure
Chainlink is currently in a symmetrical triangle, often indicating impending volatility. Short-term support levels are seen in the range of $23.70–$23.20, while resistance is noted at $25.29 and $27.91. A breakout above these levels with high volume could lead to a rise to the $30–$31 range.
Derivatives Data
Trading volume in derivatives rose by 71.40%, reaching $2.03 billion, despite a slight decline in open interest of 0.39%. The bullish sentiment is supported by high long/short ratios on exchanges like Binance and OKX. This increase in activity reflects strong trader confidence.
Liquidation Market and Its Impact on Price
In the last 24 hours, liquidation data shows that short positions in LINK faced the most significant losses, totaling $198,000. This could create conditions for short squeezes if LINK breaks resistance levels with high volume.
With the current trading data and market activity, Chainlink (LINK) is in a state of potential breakout, confirmed by bullish sentiment and liquidations of short positions.
