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Chainlink (LINK) Eyes $20 As Funding Rate Flips Bullish

source-logo  thecryptobasic.com  + 1 more 08 December 2023 15:30, UTC

Chainlink (LINK) has been among the best-performing crypto assets in recent weeks, with several indicators pointing to further gains.

Chainlink (LINK) has had an impressive run since the start of the year, more than doubling its value. In the hours leading up to press time, the crypto asset also hit a new milestone, setting a new yearly high of $17.

LINK’s current price is the highest that the cryptocurrency has traded since April 2022. Yet, there could be more in the pipeline for LINK investors, with a strong support level and several indicators pointing to sustained demand for the asset.

Multiple Indicators Favor LINK Push to $20

Beyond the bullish momentum, several other indicators line up in LINK’s favor. First, Chainlink recently confirmed that its newly launched v.0.2 community staking pool was oversubscribed, with 40,875,000 LINK (appr. $694 million) locked.

This reality indicates sustained interest in LINK ahead of the launch of general access to v.0.2 staking on December 11. As LINK holders gear up for the key event, the price of LINK may rise even more.

A second favorable indicator for LINK price is a positive funding rate on trading venues. Notably, funding rates on the Binance platform for the LINK/USDT perpetual futures recently flipped positive with a 0.0658% interest.

A positive funding rate means traders with longs pay short holders to keep their positions open in anticipation of an uptrend. This trend suggests that traders are willing to pay interest to ensure they do not miss out on any potential LINK increase.

Meanwhile, open interest on the asset also increased by 28% over the period, with most traders (over 65%) holding long positions at the time of writing. Overall, trading sentiment on LINK and the broader crypto market remains bullish, paving the way for further gains for LINK.


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