Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- A strong bullish rally saw LINK break the $7 psychological level.
- Open Interest saw a 120% increase in the last 48 hours.
Chain link [LINK] finally regained the psychological level of $7 after a strong bullish move in the past 48 hours. LINK’s aggressive rally on July 13 moved away from the critical resistance level.
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However, bulls were rejected twice in quick succession, with key retracements holding the price below the $7.2 level.
The launch of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) served as the catalyst for the 22% price surge that took LINK above the $7.2 and $8.18 resistance levels.
Overcoming the $7 hurdle could take LINK above its year-to-date high of $8.79
Source: LINK/USDT on trade view
LINK’s bearish market structure from mid-April kept the altcoin on a downward trajectory for most of Q2. However, the uptick in market sentiment at the end of June caused LINK to rise significantly from the $5 level.
The breakout of the bearish lower high on July 13 signaled the bullish intent to reverse the market structure. Despite the price retracement, bulls turned LINK bullish with a strong move above the $7.2 resistance level.
With the yearly high of $8.79 set in April clearly in sight, bulls may try to push ahead after this big break. A retest of the $8.18 support level offers new buying opportunities that could see LINK hit a new year high ($8.8 – $9.4).
On the other hand, if Bitcoin [BTC] remains below $30k, market sentiment may turn bearish. This could lead bears to reverse some of the bullish gains with $7.2 – $7.5 as near-term targets.
Meanwhile, indicators on the chart supported a continuation of the bullish move. The RSI was at 70, indicating massive buying pressure. Although the CMF eased from +0.33 to +0.20, it still pointed to strong capital inflows for LINK.
Open interest doubled
Source: Coinalyse
How much are 1.10.100 LINKs worth today?
The Open Interest data of Coin analysis showed significant support for the bullish rally in the futures market. OI rose sharply from $136 million to $286 million within 48 hours. While it was down slightly as of writing, it highlighted the aggressive demand for LINK.
Likewise, the funding rate has been consistently positive since July 18. Collectively, it signaled strong short-term bullish control.
