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As LINK looks to recover from its most recent correction, Chainlink is witnessing yet another significant increase in trading activity. The $12 resistance level is once again in focus, as futures data reveals that volume on a number of significant exchanges has increased by more than 40% to 60% in the past day.
LINK isn't giving up
After a volatile few weeks, LINK is currently trading at about $11.40. Before sellers intervened, the asset gained nearly 70% after rising from about $8.00 in early August to a peak above $13.50 in September. The ensuing correction moved LINK back toward $11, but crucially, the wider breakout has not been eliminated.
Now, trading activity is resuming. The volume of Binance LINK/USDT futures is approximately $113 million, up about 53% over the past day, while OKX and Bybit have increased by about 44% and 52%, respectively. Even higher percentage jumps were recorded at some smaller venues.
Higher volume, however, does not always indicate bullish pressure. For longer periods of time during the day, futures flows remain negative. Over the course of four hours, LINK recorded net futures outflows of about $1.84 million, and over twelve hours, $3.86 million. Additionally, spot flows during the one-, four-, eight-, and twelve-hour windows are negative.
Positioning is another aspect to keep an eye on. The top-trader position ratio is greater than 2.2, and Binance's account long/short ratio is approximately 1.46. As a result, traders continue to have a strong bias toward longs. If demand persists, that could support a breakout, but if LINK loses support, excessive long positioning increases the risk of liquidation.
ChainLink back above key levels
Technically speaking, the structure is still constructive. Following August's breakout, LINK is trading above its major moving averages, with the shorter averages rising quickly. The market now has more room for another move, as the RSI has cooled toward the mid-50s after previously reaching overbought territory.
The first barrier is $12. Bulls have had difficulty establishing this area as support despite LINK's repeated testing of it. If there is consistent volume and a daily close above $12, $12.50 and ultimately the September high of $13.50 may come back into play.
Although LINK now has more liquidity and attention due to the 65% volume expansion, buyers still need to translate that activity into real spot demand.
Dan Burgin
U.Today Editorial Team
