Chainlink: Traders bet big on LINK’s rally, despite major RISKS – Why?
The post Chainlink: Traders bet big on LINK’s rally, despite major RISKS – Why? appeared on BitcoinEthereumNews.com. Key Takeaways Chainlink’s bullish structure faces a key test at $17.50. Spot market dominance and rising Open Interest support the rally, while on-chain metrics like MVRV and NVT signal risk of overheated conditions. Caution remains near resistance. Chainlink [LINK] extended its uptrend, forming a clear bullish structure as it climbs toward a critical resistance at $17.39. After reclaiming the mid-range at $15.90, LINK formed higher lows and highs, showing consistent buyer strength. At press time, LINK traded at $16.59, closing in on a level that has capped past rallies. While the price tested this resistance before, that rally failed. The question now: Will this retest spark a breakout or another drop? Source: TradingView Can sustained spot demand drive LINK above its resistance wall? Taker Buy Volume Dominance continues to favor bulls, as shown by the positive Spot Taker CVD over a 90-day window. Naturally, this suggests that aggressive buyers continue to outpace sellers in LINK’s spot markets—a trend that often supports continuation rallies. However, this metric alone won’t guarantee a breakout. Without a spike in exchange-wide activity, momentum may stall. Still, market taker dominance signals firm demand behind LINK’s recovery. Source: CryptoQuant Do THESE ratios suggest overheated conditions? The MVRV Ratio climbed to 37.87%, at press time, placing most holders in profit territory. Historically, such levels have triggered localized tops as profit-taking kicks in. Additionally, the NVT ratio has seen repeated spikes, which typically signal a disconnect between price and actual network activity. While rising prices can reflect optimism, surging NVT suggests price may be outpacing on-chain utility. Therefore, although bullish sentiment remains high, LINK might be entering a speculative zone where cautious traders should monitor for potential reversals. Source: Santiment What does the flip in funding say about market sentiment? After weeks in the red, Funding Rates flipped positive,…
The post Chainlink: Traders bet big on LINK’s rally, despite major RISKS – Why? appeared on BitcoinEthereumNews.com.
Key Takeaways Chainlink’s bullish structure faces a key test at $17.50. Spot market dominance and rising Open Interest support the rally, while on-chain metrics like MVRV and NVT signal risk of overheated conditions. Caution remains near resistance. Chainlink [LINK] extended its uptrend, forming a clear bullish structure as it climbs toward a critical resistance at $17.39. After reclaiming the mid-range at $15.90, LINK formed higher lows and highs, showing consistent buyer strength. At press time, LINK traded at $16.59, closing in on a level that has capped past rallies. While the price tested this resistance before, that rally failed. The question now: Will this retest spark a breakout or another drop? Source: TradingView Can sustained spot demand drive LINK above its resistance wall? Taker Buy Volume Dominance continues to favor bulls, as shown by the positive Spot Taker CVD over a 90-day window. Naturally, this suggests that aggressive buyers continue to outpace sellers in LINK’s spot markets—a trend that often supports continuation rallies. However, this metric alone won’t guarantee a breakout. Without a spike in exchange-wide activity, momentum may stall. Still, market taker dominance signals firm demand behind LINK’s recovery. Source: CryptoQuant Do THESE ratios suggest overheated conditions? The MVRV Ratio climbed to 37.87%, at press time, placing most holders in profit territory. Historically, such levels have triggered localized tops as profit-taking kicks in. Additionally, the NVT ratio has seen repeated spikes, which typically signal a disconnect between price and actual network activity. While rising prices can reflect optimism, surging NVT suggests price may be outpacing on-chain utility. Therefore, although bullish sentiment remains high, LINK might be entering a speculative zone where cautious traders should monitor for potential reversals. Source: Santiment What does the flip in funding say about market sentiment? After weeks in the red, Funding Rates flipped positive,…
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