Chainlink (LINK) Nears $22 Resistance After 35% Rally; Open Interest Hits $1.21B
Chainlink (LINK) just announced a major partnership with ICE Markets to bring high quality forex and precious metals...
Quick overview
- Chainlink has partnered with ICE Markets to provide high-quality forex and precious metals data on-chain, enhancing DeFi platforms.
- The partnership aims to deliver secure market data to over 2,000 institutional users, boosting the reliability of on-chain finance.
- Chainlink also launched the 'Chainlink Reserve' to strengthen liquidity and network growth through enterprise integrations.
- Despite recent bullish trends, LINK faces resistance at $22.05, with potential for a pullback if it doesn't break through.
Chainlink (LINK) just announced a major partnership with ICE Markets to bring high quality forex and precious metals data on-chain. By using ICE’s Consolidated Feed which aggregates data from over 300 global exchanges, Chainlink will deliver tamper proof multi asset data to DeFi platforms.
This will increase the reliability and adoption of on-chain finance by providing over 2,000 institutional users (banks and asset managers) with secure market data.
Maurisa Baumann, VP of Global Data Delivery Platforms at ICE said “this is a big step in growing the global blockchain economy”. The partnership also highlights Chainlink’s growing role as a critical data provider in the decentralized market.
Also Chainlink launched the “Chainlink Reserve” a strategic LINK token pool funded by enterprise integrations and on-chain revenues which further strengthens the long term bullish case by providing liquidity and network growth.
Chainlink Futures Open Interest Nears $1.21 Billion
Chainlink’s futures market has seen a lot of capital inflow, with open interest (OI) from $814.5 million on August 6 to $1.21 billion on August 12, just shy of the all time high of $1.22 billion in January 2024. Rising OI means new market entrants and fresh buying pressure which is usually bullish.
Key points:
- OI growth means new market entrants and confidence
- 35% price increase last week brought in more speculative activity
- Profit taking as some holders are locking in gains as per Santiment’s Network Realized Profit/Loss (NPL) spike
While OI is bullish, short term volatility can’t be ruled out due to recent profit taking.
LINK Price Faces Resistance at $22.05
After 35% up last week, Chainlink is facing a big resistance at $22.05 which is close to its February 3 high. At the time of writing LINK is trading at $21.47. A daily close above $22.05 could push prices to the next resistance at $26.37 which is bullish.
Technical indicators supporting the rally:
- RSI at 66 which means strong buying above 50
- MACD is bullish and showing upward momentumBut if LINK doesn’t break out, a pullback to $18.81 is possible as traders take profits after last week’s move.
Chainlink is getting bigger in the crypto space. Watch $22.05 for the next move.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save