Chainlink Price Eyes $34 As Derivatives-Driven Rally Picks Up Pace

Key Insights:

• Chainlink price surged over 7% weekly while most altcoins remained flat, showing independent strength.
• Derivatives funding rate flipped from -0.0092% to +0.012%, with open interest rising to $1.81 billion, pointing to trader-led momentum.
• Fibonacci chart targets suggest Chainlink price may rally toward $27.41, $29.92, and even $34 if demand sustains.

Chainlink price stood out from the rest of the market. While most tokens struggled, LINK gained over 5% in the past 24 hours. In fact, it has moved up more than 130% in the past year and about 7% in the past week. Even when Bitcoin and Ethereum were flat, Chainlink remained strong.

This has made many traders ask one thing: can Chainlink push higher? On-chain and technical charts say it might, but not without help from derivatives.

Chainlink Price: CMF Weakened but MFI Diverged and Stayed Bullish

The CMF, or Chaikin Money Flow, was used to track real buying or selling on spot markets. As of August 20, CMF dropped below 0. This meant that money from traders was not flowing into LINK as strongly as before.

Also, it formed lower highs. This told us that each bounce saw less buying power.

But the story was not the same across indicators.

The MFI, or Money Flow Index, showed the opposite. While CMF weakened, MFI made a higher high. This meant more trading volume was flowing in with higher prices, a signal that traders were still buying.

The MFI value moved toward 75. This level is important. If it had crossed 75, it would have meant strong buyer control. But even without it, the MFI suggested strength.

In short, spot market strength looked shaky, but speculative demand was still visible, all thanks to the MFI.

Derivatives Drove the Rally; Not Spot Markets

The funding rate flipped hard. On August 19, it was negative, about -0.0092%. But by August 21, it turned positive at 0.012%. This change showed that traders moved from shorting to going long. That is, traders were paying fees to stay in long positions, betting on higher LINK prices.

At the same time, open interest also increased. It hit $1.81 billion on August 21. Just two days earlier, on August 19, it was $1.75 billion. That rise proved that more traders entered futures markets.

It also confirmed that the LINK rally was not from spot buying, but from derivatives traders going long.

When this happens, price spikes can happen fast. Short squeezes and high leverage can push prices higher even if actual demand is weak. That’s why many rallies in crypto look sudden; they are often futures-driven, not real demand-driven.

$27.41, $29.92, and $34: Fibonacci Levels Set the Chainlink Price

LINK traded near $25.89 at press time. Based on Fibonacci levels drawn from previous price action, the first target was $27.41. The second was $29.92. These were near-term goals. If LINK managed to break $30, the next possible level was $34.

That would mean a 31% upside from current levels.

So far, Chainlink price has shown good strength. It bounced cleanly from around $23.36 and managed to push above $25. This breakout came with strong long interest, weak spot activity, and growing social hype.

Popular traders also turned bullish. Ash Crypto posted that LINK was breaking a multi-year trend against Bitcoin. According to the chart he shared, Chainlink might be entering a long-term breakout.

Another post showed that many global banks and firms started using Chainlink services. These included BNP Paribas, Citi, ICE, Clearstream, and others. This showed that Chainlink was gaining real-world use, a key factor for investor trust.

This did not mean prices would rise forever, but it did show growing confidence.

Chainlink price showed strength that few altcoins could match. CMF was weak, but MFI and derivatives told a different story. Traders pushed futures positions higher, hoping for a move above $30. If momentum holds, $34 might be next.