Chainlink (LINK) has recently demonstrated significant growth in open interest and market activity, indicating a bullish trend. Over the past day, open interest has increased by approximately 25%, adding leverage to an already actively developing market. On September 24, open interest reached about $650.7 million, while during the spring and early summer, this figure was at the level of $350–$450 million. Thus, the recent 25% increase signals that traders are actively opening new positions rather than merely reducing their previous ones. On the chart, LINK reached a level slightly above $14, its highest level, and is currently trading around $13.96. This movement occurred after a significant breakout in August above the 200-day moving average, which was around $9.50. Since then, LINK has shown a series of higher highs and lows.
The recent growth also marked the overcoming of the previous September high of approximately $13.70, making the subsequent acceleration particularly significant. This means that the most noticeable local resistance on the chart has been removed. At the same time, volume increased during this rise, and the short-term average rose to $12, with intermediate averages from $11 to $11.30. The 200-day moving average is significantly lower at around $10.30. Although the current momentum is increasing, it has not yet reached the extreme levels achieved during previous LINK rallies. Keeping in mind that the RSI is still below the overbought zone, continued demand may raise the question of further market growth. The psychological level of $15 is the next significant target after the current level of $14.50.
However, with the growth of open interest comes an increased risk of liquidation. Even a small change can cause a sharp drop if a significant portion of new positions involves leverage. The first significant support zone on the downside is in the range of $13–$13.20, and below this level, the critical level is $12–$12.20. Currently, both price and open interest are rising simultaneously, which supports the breakout and indicates that LINK may enter a stage with greater leverage and potential volatility.
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