Chainlink (LINK) has made a slight recovery after four consecutive days of decline. As of March 30, the asset traded at $8.76, gaining over 3.47% in the last 24 hours, according to CoinMarketCap.
Improving on-chain data along with derivative data are currently strengthening optimism around LINK and suggest that the asset’s ongoing upward move may continue in the coming days.
On-chain and derivative data point to a shift in sentiment
Data from analytical tool CryptoQuant shows that despite the recent decline, investor interest in the asset has increased significantly.
According to Chainlink’s foreign exchange reserves on all exchanges, a large decrease of 331 thousand LINK was recorded in the last 48 hours.
A decreasing foreign exchange reserve is usually indicative of accumulation. When this occurs at a price level that has historically shown signs of reversal, it indicates that investors can not only expect a potential recovery but also benefit from the decline.
On the derivatives side, intraday investors seem to follow the market trend.
Data from CoinGlass CONNECTION The currency liquidation map shows that amid this recovery, investors are showing interest around $8.60 on the lower end and $8.83 on the upper end.
These are not just basic levels; Traders in these areas have very high leverage, creating a long position worth $938.54 thousand and a short position worth $268 thousand. This suggests that market sentiment has changed amid the ongoing recovery.
Meanwhile, LINK’s Long/Short Ratio reached a one-month high of 1.06. A ratio above 1 reflects a bullish sentiment among traders; because more participants are betting that the price will move upwards.
In fact, LINK’s continued optimism is further supported by US Spot LINK ETFs. Data from SoSoValue shows that these ETFs continue to post steady inflows despite ongoing market uncertainty.
This not only strengthens LINK’s outlook, but also demonstrates steady and growing demand for the asset in the traditional market.
LINK is targeting a potential upside of 14.50%
On the daily chart, LINK looked poised for a significant price increase. Price action showed that LINK has been moving within an ascending channel pattern between its upper and lower limits since February 6.
Since then, the price has made a strong recovery every time it touched the lower bound; Looks like LINK has done it again.
According to this historical pattern, if LINK remains above the lower bound at $8.19, it has the potential to register a price increase of over 14.50% and could reach $10.08 in the coming days.
However, the Average Directional Index (ADX), an indicator that measures the strength of the trend, fell to 14.43, well below the key threshold of 25; This indicates weak trend momentum and a lack of strong directional bias in the market.
Final Summary
- Chainlink is up 3.47%, raising the possibility of a price recovery as it is currently trading near the lower boundary of an ascending channel pattern.
- Improving on-chain data along with derivative data shows that LINK may continue its upward momentum in the coming days.
