LINK Traders Are Targeting $40 While Searching For Momentum |

Chainlink (LINK) is the best oracle provider by performance, More than 281 cryptocurrency projects have been on-boarded by the project in 2021. Some of them are heavyweights like Alchemix and the ECO chain from Huobi.

Optimism Surrounds LINK

The oracle solutions provided by Chainlink have been an important backbone of the industry of DApps. Their crypto LINK is very popular among the crowd.

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However, on 16th Aug it retraced 12% from its top at $30.50. As a result, there is ample room for investors to wonder if LINK’s bullish trend has ended. But there are graphs indicating otherwise. Bullish investors will take heart in derivatives data. It is indicating that the crypto may surge past $40 or go even further beyond.

The open interest in LINK futures has a value of $260Mn currently. It may appear small in comparison with the over $1Bn values held by XRP, Cardano (ADA), and Ether (ETH). However, the number has relevance. the crypto’s average daily volume of spot exchange stands at $560Mn. Nevertheless, the transparent volume posted on Nomics says that this is 65% less than the market capitalization value of the bigger altcoins.

Perpetual contracts, which are also called inverse swaps, come with a rate that is embedded. This rate is also normally charged every 8 hours. The fee makes sure that no imbalances regarding exchange risks exist. A funding rate that is positive suggests that long-term buyers are the people who demand more leverage.

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However, the situation becomes the opposite when additional leverage is required by short-term sellers. This results in a negative funding rate. Between 20th August and 24th August, the 8-hour fee had climbed to an average of $0.7. The temporary spike was rapidly seized while the crypto’s price fell to less than $27. Overall, a situation that was well-balanced was played out.

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