Chainlink price has formed a rare bullish pattern, indicating further growth in the coming weeks. The LINK token jumped to $17 on Saturday, its third straight day of gains, as the crypto fear and greed index remained in extreme greed territory. It has jumped 108% from its lowest level this year.
Chainlink Price Forms Rare Bullish Pattern
The daily chart shows that LINK price formed a rare golden cross pattern as the 50-day and 200-day exponential moving averages (EMA) crossed over each other. This is one of the most bullish patterns in the market in most periods.
The last time Chainlink formed this cross was last October when it was trading at $8.30. It then jumped more than 170% to hit a high of $22.88, its highest level this year. Thus, there is a possibility that the coin will continue its strong bullish run and potentially reach a year-to-date high that is around 35% above current levels.
LINK price has other positive catalysts that could push it higher in the near future. First, momentum indicators such as the Relative Strength Index (RSI) and MACD are pointing upward, which is a sign of strong momentum.
In addition, the coin has risen above the 38.2% Fibonacci retracement level and is now near the extreme excess point of the Murray Math Lines tool. It also remains above the Ichimoku cloud indicator.
Thus, there is a possibility that LINK price will continue to rise as bulls target the psychological $20 point, which coincides with the highest level in May of this year. A break above this level would indicate further gains, perhaps to year-to-date highs around $23.
Conversely, a fall below the weak stop and pivot point at $15 would invalidate the bullish call. Such a drop will increase the likelihood 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, the data shows that there is high demand for the coin in the spot and futures markets. Futures open interest jumped to more than $340 million, the highest level since April this year, according to CoinGlass.
Open interest is a number that shows the volume of outstanding orders in the futures market. A higher number is often a sign of high demand. The same is happening in the spot market, where its 24-hour volume has jumped to more than $1.3 billion.
Secondly, Chainlink plays one of the most important roles in the blockchain industry by offering Oracle services to developers. The purpose of an oracle is to move data from network to network. In this case, it is used by some of the biggest players in the blockchain industry, bringing its total secured value to over $34 billion. Chronicle, the second largest player in the industry, has a TVS of $9.4 billion.
Third, there is an increasing likelihood that the Trump administration will approve the LINK spot ETF if an application is submitted. Additionally, Chainlink is widely used in the industry and was even chosen by World Liberty Financial to provide oracles.
In addition, Chainlink plays a large role in the fast-growing tokenization industry through its cross-chain interconnect protocol (CCIP). CCIP is used to verify data from various chains such as Ethereum, Solana, Base and Cardano.
LINK’s price is also rising due to the ongoing DeFi resurgence, which has seen the amount of money in the industry skyrocket. Data shows that TVL in the sector has jumped to nearly $100 billion.
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