Chainlink price prediction as LINK forms a rare bullish pattern

(Originally posted on : Invezz )

Chainlink price has formed a rare bullish pattern, pointing to more gains in the coming weeks. LINK token jumped to $17 on Saturday, its third consecutive day of gains as the crypto fear and greed index remained in the extreme greed zone. It has jumped by 108% from its lowest level this year.

Chainlink price forms a rare bullish pattern

The daily chart shows that the LINK price has formed a rare golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. This is one of the most bullish patterns in the market in most periods.

The last time that Chainlink formed this cross was in October last year when it was trading at $8.30. It then jumped by over 170% and reached a high of $22.88, its highest level this year. Therefore, there is a likelihood that the coin will continue its strong bull run, and potentially hit its YTD high, which is about 35% above the current level. 

LINK price has other positive catalysts that could push it higher in the near term. First, momentum indicators like the Relative Strength Index (RSI) and the MACD are all pointing upwards, which is a sign of strong momentum. 

Also, the coin has jumped above the 38.2% Fibonacci Retracement level and is now near the extreme overshoot point of the Murrey Math Lines tool. It also remains above the Ichimoku cloud indicator. 

Therefore, there is a likelihood that the LINK price will continue rising as bulls target the psychological point at $20, which coincides with the highest level in May this year. A break above that level will point to more gains, potentially to the year-to-date high of near $23.

Conversely, a drop below the weak stop & reverse point at $15 will invalidate the bullish view. Such a drop will raise the chance of Chainlink falling to $10.

LINK price has fundamental catalysts

Chainlink price has some fundamental catalysts that could push its price higher in the coming days. First, data shows that there is a strong demand for the coin in the spot and future markets. According to CoinGlass, the futures open interest has jumped to over $340 million, its highest level since April this year. 

Open interest is a number that looks at the volume of unfilled orders in the futures market. A higher figure is often a sign that there is strong demand. The same is happening in the spot market where its 24-hour volume jumped to over $1.3 billion.

Second, Chainlink has one of the most important roles in the blockchain industry, where it offers oracle services to developers. An oracle’s goal is to move off-chain data to the on-chain. In its case, it is used by some of the biggest players in the blockchain industry, giving it a total value secured of over $34 billion. Chronicle, the second-biggest player in the industry, has a TVS of $9.4 billion.

Third, there are rising odds that the Trump administration will approve a spot LINK ETF if there is an application. Besides, Chainlink is widely used in the industry and has even been selected to provide oracles by World Liberty Financial. 

Additionally, Chainlink has a big role in the fast-growing industry tokenization industry because of its Cross-Chain Interoperability Protocol (CCIP). CCIP is used to verify data from across various chains like Ethereum, Solana, Base, and Cardano. 

LINK price is also jumping because of the ongoing DeFi renaissance that has led to a sharp increase in the amount of money in the industry. Data shows that the TVL in the sector has jumped to almost $100 billion. 

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