Chainlink (LINK) price has shown signs of recovery, aiming to return to the $12 level after rising 4.20% in the last 24 hours. This rebound comes after the token, which is ranked 14th most valuable cryptocurrency, fell below $10 a few days ago.
If LINK maintains its upward trajectory and key metrics continue to improve, it may be able to avoid another downturn and continue to grow.
Chainlink Open Interest, Large Transactions Rise
One of the key metrics that supports Chainlink’s recent rally is rising open interest (OI). OI tracks the number of active contracts tied to a cryptocurrency, reflecting market engagement. A rise in OI suggests increasing liquidity and interest in those contracts, while a decline indicates decreased exposure.
In terms of price, rising OI along with falling price often confirms a downtrend. Conversely, if OI declines while price rises, it may be a bearish reversal signal. However, in the case of Chainlink, both OI and price are rising, suggesting that the uptrend may continue.
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Additionally, Chainlink has seen an increase in large transactions since September 5, indicating increased liquidity around the cryptocurrency. However, a spike in large transactions is not always a signal of upward pressure. If these transactions spike during a price drop, it indicates dominant selling pressure.
In the case of LINK, the recent surge in large transactions indicates growing demand. This demand, coupled with larger transaction sizes, could help support the current price increase and sustain the current uptrend.
Price Forecast LINKS: It’s Time to Bring Back $12
Chainlink price is currently trading at $10.74, reaching this level after bulls successfully defended the $10.05 support. According to the daily chart, the cryptocurrency may be forming a V-shaped recovery — a sharp rebound after a steep decline. LINK price dropped to $9.57 on September 8 before reversing at this level.
Additionally, the Relative Strength Index (RSI), a momentum indicator, is approaching the neutral line. If the RSI rises above 50.00, it could confirm the bullish outlook, potentially sending LINK towards $12.34, where the neckline of the V-shaped pattern is located.
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In an extremely bullish situation, Chainlink price could jump to $14.82. However, market participants should keep an eye on the cryptocurrency price at $10.75, as this is where the uptrend was reversed on August 8.
If the bulls fail to overcome this resistance, LINK could face a pullback, which would lead to a price decline to $10.05.
