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- Chainlink eyes a potential breakout amid a crucial bullish formation of the chain.
- The protocol has continued to chart important integrations, driving adoption forward.
Chainlink (LINK) has staged a major comeback after weeks of experiencing massive sell-offs. Chainlink traders and investors anticipate a major rally as LINK shows bullish patterns on its price chart.
LINK Eyes 20% Breakout
Data from MarketCap shows LINK changing hands for $17.08, up by 2.57% in the past 24 hours. The latest rally began on May 6 following an easing of macro conditions. LINK is now up almost 70% from its lowest level this year, pushing the market cap to over $11.2 billion.
LINK has formed a classic inverse head-and-shoulders pattern, often indicative of a trend reversal. The head sits around $10, with the two shoulders near the $16 mark.
The LINK Open Interest (OI) is a key metric for a bullish outcome. According to CoinGlass data, LINK’s OI climbed to $768.65 million, its highest level since March 11, when it stood at $400 million. A rising open interest typically signals increasing trader participation and heightened speculative activity, often seen ahead of major price moves.
Another key metric, the funding rate, has remained positive for LINK over the past seven days. A positive funding rate means long traders pay a small fee to shorts. This suggests more people are bullish and willing to pay up to hold their long positions.
Per the daily chart, LINK has recovered strongly after bottoming at $10.21 in April. It has now broken above the 50-day moving average, another strong indication that the bulls are winning.
The Average Directional Index also adds to the bullish momentum, climbing to 20, indicating the build-up of a strong trend. Moreover, the 4-hour chart shows LINK trading with a likely breakout in view.
As highlighted in our previous article, the Oracle network launched a new reward program to engage long-term LINK stakers and demonstrate an ascending broadening pattern.
The current Chainlink setup suggests that LINK will climb towards $20.95, a 21% gain from current levels. If bullish momentum continues, LINK could reclaim its all-time high of $27.3 in the coming weeks, further extending gains to 58%.
Chainlink Ecosystem Growth
A series of fundamental catalysts across Chainlink’s ecosystem is matching the momentum on the technical front. Chainlink has formed new partnerships and protocol-level integrations, positioning the platform to capture greater utility. This move could amplify demand for LINK in the weeks ahead.
As we covered in our latest report, Chainlink continues to push forward with real-world adoption. The Oracle protocol has compiled a list of over 77 ways to use the network, expanding the blockchain’s capabilities beyond token transfers. Chainlink assists financial institutions in their crucial roles of issuance, settlement, and servicing assets.
Earlier this month, Chainlink partnered with Space and Time to launch a community rewards program. As highlighted in our previous article, the new program aims to engage long-term LINK stakers and demonstrate a new way to embrace the ecosystem.
This collaboration will occur shortly after Kamino Finance integrates Chainlink Data Streams to improve real-time market data quality and reduce latency. As integration for Chainlink infrastructure continues to increase, the price of LINK is anticipated to climb higher.