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- LINK broke out of a months-long streak with an 11% gain in the past 48 hours.
- The long/short ratio showed that buyers were actively bidding for further gains.
Chainlink’s [LINK] A bullish breakout took the altcoin to the critical price level of $7. An earlier price report highlighted the remote possibility of LINK reaching the $7 price level due to significant token unlocking.
Is your portfolio green? View the LINK Profit Calculator
However, the return of bullish belief to the markets along with Bitcoin [BTC] Reclaiming the $27,000 price zone brought good profits for LINK.
Is the buying pressure enough to overcome the $7 roadblock?
Source: LINK/USDT on Trading View
LINK traded sideways between the $6 and $6.4 support levels for a one-month period. A look at the 12-hour time frame revealed that bulls gained the upper hand on September 18 with an 11% gain. This pushed LINK past the $6.4 resistance level.
While the higher time frames showed a price rejection at the $7 level, the lower time frames showed that bullish momentum was still present.
This was reflected by the Relative Strength Index (RSI) hovering in the overbought zone, signaling strong buying pressure. The Moving Average Convergence Divergence (MACD) was also bullish as it remained above the zero bound with multiple green bars.
If the bullish momentum continues, buyers can expect to clear the $7 resistance and post further gains from $7.5 to $8. Otherwise, a rejection at resistance level could see LINK fall into another range between $6.4 and $7.
Buyers continued to lead the derivatives market
Source: Mint glass
How much are 1,10,100 LINKs worth today?
The one-hour time frame for the long/short ratio showed buyers firmly in the lead. Longs had a 52.93% share of the open contracts, which translated into a $2 million difference between longs and shorts. As such, a break above the $7 price level would extend the bullish rally.