Chainlink Eyes $20 Milestone as Open Interest Explodes 13% – Bulls Take Control

Chainlink's oracle network is flexing its muscles as derivatives traders pile in—fueling a 13% surge in open interest that could propel LINK to $20.

Why the frenzy? Smart money's betting big on Chainlink's critical role in bridging real-world data to blockchains—even as traditional finance still struggles to understand what an 'oracle' actually does.

The technical setup screams bullish: With this much leveraged interest, LINK's either primed for a breakout or one massive liquidation cascade. Place your bets.

• Chainlink trades above the $18.93 Fib and targets $22.30 and $26.50 soon.
• Open interest rises 13% and derivatives volume is up 46.59% as bulls dominate.
• RSI and MACD confirm strong breakout momentum with no bearish divergence forming.

Chainlink (LINK) is getting closer to the $20 mark as it gains 7% over the past 24 hours. The gain is based on the impact of key technicals and a significant increase in the trading of derivatives. Targets are between $22.30 and $26.50.

Bullish Breakout for Chainlink

According to the chart on TradingView, the Fibonacci retracement makes it clear that the LINK has stayed above important support areas. The most recent rally started because the price already turned the 0.382 Fib level as support at $16.29. The price uptrend started after LINK breached the 0.5 Fib mark at $17.69.

It is currently trading above the 0.618 retracement point at $18.93. This is a historical resistance, and the reclaiming is a sign that bulls are in command. The second Fib target is at $22.30 or the 0.786 retracement, and coincides with an earlier March 2025 high.

Should the price maintain a higher level than its current price, the second structural level will be around $26.50. The bullish formation is confirmed on the daily timeframe by the VWAP. The current VWAP session is at the $19.326 price level. The chainlink token is currently trading above this price with strong volume confirmation.

By trading above the volume weighted average, it indicates that traders are more in the accumulation mode than distribution. It is not uncommon to find that VWAP is used by institutions as their reference point. When the token price is above it during an uptrend, it confirms that the price is in a strong uptrend.

VWAP and Fib. Source: TradingView

RSI and MACD Establish Bullish Momentum

MACD signals also indicate the bullish mood. The MACD line is at 1.292, and the signal line is at 0.799. There is a continued positive momentum displayed on the histogram, and it’s not showing any sign of slowing down.

This will be a strong trend with further upside for as long as the MACD remains above the signal line. The previous time when a similar crossover was observed, LINK rallied by more than 10% within a few days.

In the daily chart, the RSI is at 82.80, which makes LINK be in overbought territory. This can be interpreted to mean some temporary cooling. But overbought indicators in breakouts tend to be signs of strength rather than weakness.

Most traders usually see a bullish momentum when the RSI is higher than 70. The trend bias will persist in an upward direction as long as the RSI is above that mark. At the moment, there is no bearish divergence between RSI and price, and the bullish momentum remains.

RSI and MACD. Source: TradingView

Derivatives Surge Suggest Strong Chainlink Performance

The bullish trend is further supported by derivatives data. As the data on CoinGlass shows, Chainlink open interest is currently at $1.05 billion. That represents a 13.18% rise in the past 24 hours. An increase in derivatives volume was also experienced to the tune of 46.59% to $1.93 billion.

Such numbers signify an increased level of trust among traders who are gearing up to make more profits. The major exchanges offering interest in LINK are Bybit, Binance, and Hyperliquid, indicating broad market engagement.

Source: Coinglass

The technical structure, together with the inflows shown by derivatives, suggests a strong performance over the short term. The initial resistance is at $20. Should this be exceeded and consolidated, the subsequent area will be the resistance level at $22.30.