Chainlink (LINK) Bulls Charge Toward Key Resistance as Open Interest Explodes – Is $50 Next?

Chainlink’s LINK token is flexing its muscles again—bulls just smashed through another resistance level as derivatives traders pile in. Open interest spikes signal big-money bets, but can the oracle heavyweight sustain the momentum?

LINK’s price action screams FOMO. With open interest surging and shorts getting squeezed, the charts look primed for a volatile ride. Traders eyeing the next key resistance level better strap in—this isn’t for the faint-hearted.

Meanwhile, Wall Street still can’t decide if crypto is a scam or the future. Good thing Chainlink’s oracle networks actually *do* something useful—unlike half the ‘disruptive fintech’ IPOs this year.

TLDR

• LINK trades around $16.59, approaching critical resistance at $17.39-$17.50 that has capped previous rallies
• Spot buying dominance and positive funding rates show strong trader confidence with 8.47% jump in open interest
• MVRV ratio at 37.87% suggests most holders are in profit, historically triggering potential selling pressure
• Daily trading volume exceeds $659 million, confirming the upward move has solid participation backing it
• Analysts point to bullish divergence with M2 liquidity trends suggesting LINK remains undervalued at current levels

Chainlink has extended its uptrend over recent weeks, forming a clear bullish structure as it approaches a critical resistance zone. The token currently trades at $16.59, having reclaimed the mid-range at $15.90 and established higher lows and highs.

This resistance level between $16.00 and $17.50 has served as a strong barrier in past attempts. Previous rallies failed at this zone, making the current test crucial for determining LINK’s next direction.

The price action shows consistent buyer strength since early July. After bouncing from support NEAR $15.20, LINK has maintained an upward trajectory with brief pullbacks followed by renewed buying interest.

Strong Spot Market Demand Supports Rally

Taker Buy Volume Dominance continues to favor bulls over a 90-day window. This metric shows aggressive buyers outpacing sellers in LINK’s spot markets, a trend that typically supports continuation rallies.

The positive Spot Taker CVD indicates firm demand behind LINK’s recovery. However, this metric alone won’t guarantee a breakout without increased exchange-wide activity.

Daily trading volume has exceeded $659 million, confirming the upward MOVE is supported by active participation rather than thin liquidity. This level of volume suggests genuine market interest in the current price levels.

Funding rates have flipped positive after weeks in negative territory. This shift reflects growing preference for long positions on derivatives platforms, with traders willing to pay premiums to maintain bullish exposure.

Derivatives Activity Shows Mixed Signals

Open Interest jumped 8.47% in the last 24 hours to $843.05 million, indicating strong participation from derivatives traders. This rise shows growing speculative appetite that aligns with the ongoing price surge.

However, elevated open interest can also signal potential volatility risks. The Binance Heatmap revealed clustered liquidations just below the $17 zone, suggesting breakout or rejection could trigger rapid price moves.

These liquidation clusters represent over-leveraged positions that could face pressure if price stalls. The concentration of these positions near current resistance levels adds another LAYER of complexity to the technical setup.

Market makers and institutional traders appear to be positioning for increased volatility around the key resistance zone. This positioning could amplify price moves in either direction once the level is tested.

Positive funding rates indicate improved trader confidence but also come with risks. If price stalls at resistance, long positions could face liquidation pressure that might accelerate any downward movement.

The combination of rising open interest and positive funding creates a setup where momentum could accelerate quickly. Traders are paying premiums to stay long, showing conviction in the bullish thesis.

On-Chain Metrics Signal Caution

The MVRV Ratio climbed to 37.87%, placing most holders in profit territory. Historically, such levels have triggered localized tops as profit-taking activity increases.

Additionally, the NVT ratio has seen repeated spikes, typically signaling a disconnect between price and actual network activity. While rising prices reflect optimism, surging NVT suggests price may be outpacing on-chain utility.

These metrics indicate LINK might be entering a speculative zone where cautious monitoring is warranted. The combination of profitable holders and elevated network value relative to transactions creates conditions where reversals become more likely.

Analyst Bull Bear Spot identified a bullish divergence between LINK and M2 liquidity trends. The M2 global liquidity index has been trending upward sharply while LINK’s price has trailed behind, suggesting the token may be underpriced relative to broader liquidity conditions.

Support structure remains intact with green zones between $13.50 and $11.60. These levels have consistently held during pullbacks, reflecting accumulation patterns at key technical areas.

The current resistance test at $17.39-$17.50 represents a crucial inflection point for LINK’s short-term trajectory, with spot demand, funding rates, and open interest all supporting continued bullish momentum.