Chainlink’s (LINK) price has shown signs of recovery, aiming to return to the $12 level after a 4.20% rise in the last 24 hours. This rebound comes after the token, ranked as the 14th most valuable cryptocurrency, dropped below $10 a few days ago.
One key indicator supporting Chainlink’s recent upswing is its rising Open Interest (OI). OI tracks the number of active contracts tied to the cryptocurrency, reflecting the market’s engagement. An increase in OI suggests growing liquidity and interest in those contracts, while a decline points to reduced exposure.
Rising OI alongside a price dip often confirms a downtrend. Conversely, if OI decreases during a price rise, it could signal a bearish reversal. In Chainlink's case, both OI and price are increasing, suggesting the uptrend may continue.
Chainlink has seen a rise in large transactions since September 5, indicating increased liquidity around the cryptocurrency. A spike in large transactions doesn’t always signal upward pressure. If these transactions surge during a price drop, it points to dominant selling pressure. In LINK’s case, the recent jump in large transactions suggests growing demand.
Chainlink’s price currently trades 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 following a steep decline.
The Relative Strength Index (RSI), a momentum indicator, is nearing the neutral line. If the RSI climbs above 50.00, it could confirm the bullish outlook, potentially driving LINK toward $12.34, where the neckline of the V-shaped pattern lies.
In a highly bullish situation, Chainlink’s price might jump toward $14.82. However, market participants need to watch for the crypto’s price at $10.75, as this was the point at which the uptrend faced rejection on August 8. Should bulls fail to break this resistance, LINK could experience a retracement, which would cause the price to decline to $10.05.
