Chainlink (LINK) gains momentum, trading at $9.13 at the time of writing on Friday. The oracle token’s bullish outlook mirrors the broader crypto market’s positive sentiment, driven by the fragile yet holding ceasefire between the United States (US) and Iran.
Chainlink steadies as bullish bets expand
Traders appear to be gaining conviction in Chainlink’s ability to sustain an uptrend, which may explain the surge in bullish bets, keeping the futures Open Interest (OI) Weighted Funding Rate positive at 0.0042% on Friday, slightly down from 0.0061% the previous day. If this outlook remains intact, pressure could ease, paving the way for Chainlink’s breakout above $10.00.
Meanwhile, LINK faces suppressed retail demand, as reflected by futures OI, which reflects the notional value of outstanding futures contracts, shrinking to roughly $371 million on Friday, from around $376 million the previous day. Suppressed futures OI indicates that investors are losing conviction and are unwilling to open new positions.
Technical outlook: Chainlink faces hurdles despite breakout attempt
Chainlink trades at $9.13, keeping a constrained outlook as spot holds below the main moving averages and a dominant downward resistance trendline. The price hovers just under the 50-day Exponential Moving Average (EMA) at $9.16, while the 100-day EMA at $10.19 and the 200-day EMA at $12.08 remain comfortably overhead, suggesting that the broader recovery attempt is still limited within a medium-term downtrend.
Momentum is more constructive, with the Relative Strength Index (RSI) near 54 on the daily chart and the Moving Average Convergence Divergence (MACD) turning positive, yet this improving tone has not been enough to reclaim the nearby moving-average ceiling.
On the topside, immediate resistance is clustered around the 50-day EMA at $9.16, followed by the break zone of the descending trendline near $9.26, where sellers are likely to reassert control on first tests. A sustained push above that area would expose the next bullish target at the 100-day EMA around $10.19, ahead of the more strategic barrier at the 200-day EMA near $12.08.
The lack of clearly defined nearby support levels in the provided metrics leaves the oracle token vulnerable to deeper pullbacks if buyers fail to overcome the $9.16–$9.26 supply band, and traders will need to look to prior swing lows, for instance, $8.68 on the broader chart, for potential demand zones.
Open Interest, funding rate FAQs
(The technical analysis of this story was written with the help of an AI tool.)
Leave a comment