Bulls flex muscle on LINK

LINK has broken out of its pennant pattern. If LINK can flip the prior resistance of $15.30 into new support, it can see further upside to $17.75.

The mechanics have reset back to healthier levels, having been overheated this morning.

TLDR

• LINK breaks out of its pennant pattern, targeting $17.75 if $15.30 can become the new support.
• Mechanics reset to healthier levels after overheating, signalling a potential rebound.
• Open Interest hits local highs at $375m, and Funding Rate stabilizes after volatile fluctuations.
• We maintain a bullish outlook for LINK if BTC remains stable.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

LINK 12hr

Technical analysis

• LINK has broken out perfectly from its pennant pattern, finding resistance at $16.40.
• LINK has found support at the local level of $15.30, which had acted as prior resistance. 
• As long as BTC doesn’t puke (we don’t expect it to), we see LINK as likely to get further upside in the coming weeks with a potential target of $17.75. 
• If $14.80 is lost, then this will invalidate the pattern. 

Market mechanics

• Open Interest has increased to new local highs of $375m. 
• The OI-Weighted Funding Rate, similar to SOL, has been very volatile. In the early hours of this morning, it spiked up to 0.0511% but has since decreased to 0.0180%. This has reset back to much healthier levels and shaken out some of the late Longs that likely joined the party over the weekend. 
• The Long/Short ratio at 0.9666 indicates more participants have piled into Shorts than Longs in the past 8 hours. This has perhaps also helped the Funding Rate move meaningfully lower from where it was 8-12 hours ago. 

Cryptonary’s take

LINK has been and looks like it’ll continue to be a strong performer. We like that the price has recently pulled back and retested the $15.30 area as new support, having been a prior local resistance. We see LINK’s next major move being a move higher to $17.75, which is the next major horizontal resistance above price - assuming LINK can surpass the local resistance of $16.40.