LINK, the native cryptocurrency of blockchain oracle network <a href="https://www.coingecko.com/en/coins/chainlink" target="_blank" rel="nofollow noopener">Chainlink</a>, has declined as much as 12% since the August 16 peak of $30.50. Predictably, investors are speculating if the recent bull run has come to a close. Fortunately for them, derivatives data shows that LINK is poised for another rally, and this time prices could hit $40 or even higher.
<h2>Derivatives Data Indicates LINK Poised for Another Rally up to $40</h2>
At the moment, Chainlink is <a href="https://www.cryptoknowmics.com/news/chainlink-and-bitcoin-gold-are-rallying-amid-strong-buyer-demand/">supported</a> by a lot of factors that could contribute to its momentum in the long term. The most important of them is adoption.

Since the start of this year, Chainlink has extended support to over 281 projects, which includes bigger names like <a href="https://www.cryptoknowmics.com/news/huobi-becomes-first-exchange-to-operate-chainlink-node/">Huobi's ECO Chain</a>, Alchemix, and the Hedera Governing Council. Furthermore, its verifiable randomness function (VRF) has found many takers in the decentralized applications (DApps) segment. 

Earlier this month, Chainlink onboarded Switzerland-based telecom company Swisscom, which intends to use the network for a pilot project. Notably, the Swiss government holds a 51% stake in Swisscom. 

Shortly after that, decentralized exchange (DEX) and liquidity provider Bancor revealed that its newest version would integrate Chainlink Keepers to simplify staking and automate advanced trading features. 

The back-to-back announcements turbocharged LINK prices, culminating in the breach of $30. As of press time, the token’s price has corrected more than 14%, but derivative data is pointing to a recovery on the horizon.
<h2>Absence of a High Futures Open Interest Signals Upcoming Rally for Chainlink</h2>
Perpetual contracts, or inverse swaps, are usually a good indicator of market sentiment. They have an embedded rate, charged every eight hours, which prevents exchange risk imbalances. When the funding rate is positive, it means that buyers are demanding more leverage. 

On the other side, if the funding rate is negative, then it’s the sellers who are demanding more leverage. 

According to Bybt.com data, the 8-hour fee hit an average of 0.07% between August 20 and August 24, representing a monthly fee of 6.2%. This temporary uptick seized swiftly as LINK’s price declined below $27 and indicated a balance between the leverage used by buyers and sellers. 

This data could be construed by some as neutral-to-bearish, however, the fact that the futures’ open interest isn’t high and the leverage situation is balanced is a good sign. This is particularly relevant in LINK’s case since the currency has appreciated 94% since its July 20 low of $13.40.

Altogether, derivatives data signals that LINK could soon rebound from the present correction and clear the path for a bull run to $40 or higher.

Chainlink (LINK) Derivatives Data Shows $40 Still Attainable

Despite recent price correction, derivatives data shows that Chainlink(LINK) is poised for another rally, and this time prices could hit $40 or even higher.

Divya is a postgraduate from Jawaharlal Nehru University specializing in International Relations and a professional writer with more than 5 years of experience writing for the web. She is an avid reader interested in the global financial system and the effects of decentralization. At Cryptoknowmics, she hopes to deliver clear and understandable content to inform readers about the latest events in the crypto sector.

Chainlink (LINK) Derivatives Data Shows $40 Still Attainable

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