Chainlink price rallies 22%, liquidating more than $2.54 million in short positions
- Chainlink price has shot up 10% in the last few hours, noting a massive strength.
- This move in LINK comes as the BTC price is up nearly 2% in the last four hours.
- The sudden uptick in price has caused liquidation of nearly $2.54 million in short positions and $203,000 worth of long positions.
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Chainlink price is the first Decentralize Finance (DeFi) coin to pump after The Compound platform’s COMP token. As mentioned in a previous publication, more cryptocurrencies in this sector are going to follow as profits from different tokens change paths.
LINK bears face liquidations
Chainlink price rallied nearly 22% in the last eight hours, which has caused $2.54 million worth of short position to be blown out of the water.
The last time such a huge magnitude of positions were liquidated was in January 2022, when Chainlink price nosedived by nearly 50%
LINK/USDT 1-day chart
Chainlink price eyes a breakout from consolidation
Chainlink price has been in a consolidation for 434 days, ranging between $5.53 to $9.66. The sudden uptick in buying pressure has caused LINK to shoot up by over 20%, catching bears and investors off-guard.
As a result, Chainlink price has breached the range’s midpoint at $7.59 and also shattered a critical resistance level at $7.99. This resistance level has been a thorn in the side of bulls for nearly the same time as the consolidation.
LINK/USDT 1-day chart
The uptick in buying pressure that has pushed Chainlink price higher could face a massive profit-taking if it is a one-off. In such a case, LINK could pull back and retest the range’s midpoint at $7.59 as a support floor.
A breakdown of this level could threaten the recent gains and could send Chainlink price down to $5.93.
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.
