Chainlink shatters multi-month hurdle after 21% rally, what can LINK holders expect next?

Chainlink price has slipped past the 15-month resistance level, extending from $7.69 to $7.85.
In the last four hours, $3.78 million worth of positions have been liquidated.
A weekly candlestick close below $7.69 will invalidate the bullish thesis.

Akash Girimath FXStreet

Chainlink (LINK) price has caught many investors off guard as it rallied 21% in the 12 hours. This sudden but explosive uptick could be the start of an uptrend as many investors on Twitter are forecasting. As a result, CoinGlass data shows that roughly $3.78 million worth of positions were liquidated in the last 12 hours. Out of these, $3.38 million worth of futures positions belonged to the bears, aka short positions, while only $406,000 worth of long positions were wiped off.

LINK liquidation

Chainlink price catches traders by surprises

Chainlink (LINK) price shows a clear sign of bullish momentum, which has propelled it by 21% in the last 12 hours. This uptrend is likely to collect the buy-side liquidity resting above $9.86 and potentially tag the $10 psychological level.

This move would constitute a 16% gain from $9.09, which is the current position that LINK is trading at. Beyond the said level, Chainlink price will face the $15.57 hurdle. Buyers need to make sure this resistance level is flipped into a support floor before betting on a continued rally.

A weekly candlestick close above $15.57 hurdle could extend the Chainlink price rally to $29.12.

Also read: Chainlink whales continue their accumulation spree after LINK’s 40% rally, why?

LINK/USDT 1-day chart

On the contrary, if this weekend rally was a fluke and investors resort to profit-taking, it would trigger a sell-off. In such a case, a weekly candlestick that undoes the recent gains and produces a candlestick close below $7.69 will invalidate the bullish thesis.

This move would bring Chainlink price back to pavilion and potentially catalyze a steep 9% correction to $7.03.

Author

Akash Girimath

FXStreet

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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