Why did the price of Chainlink rise to the sky at the beginning of the week?

The price of LINK from Chainlink just started the new week with a strong bullish surge, recording an increase of more than 5%. This upward momentum continues to reinforce the positive trend that has been occurring in the first half of August.

The optimistic start to the week has brought the total increase of LINK in August to 69% as of now. This places LINK in a potential position to become one of the best-performing cryptocurrencies of the month, especially if it can maintain this bullish momentum.

The recent bullish trend of LINK has revealed some interesting factors that may explain this recovery. Specifically, LINK's price action has been accompanied by a 12% increase in dominance rate, reaching a high of 0.45%, which has not been recorded since the end of February.

LINK Dominance Ratio | Source: TradingViewThis increase in dominance ratio confirms that Chainlink is one of the coins attracting large capital inflows amid the current capital rotation.

LINK recorded the highest inflow of funds in a day in 2025

LINK experienced the strongest outflow of funds from the market last Thursday, with a total net outflow value reaching 41 million USD. Interestingly, most of this outflow returned on Sunday, when the net inflow nearly reached 28 million USD. This is the highest net inflow LINK has received in a single day in over 10 months.

LINK spot flow | Source: CoinGlassThe situation has become even more interesting in the derivatives sector, where trading volume surpassed 5 billion USD, the highest in the history of derivatives volume. Not stopping there, LINK also recorded a record open interest, reaching 1.75 billion USD, while trading volume in the spot segment increased to 2.4 billion USD according to data from DeFiLlama.

These results began to appear after Chainlink was announced to have solidified its strong position in the real asset segment (RWAs). Additionally, the network has just launched the Chainlink reserve program, through which a robust LINK buyback program will be implemented.

The increased adoption by organizations, along with strong demand from large investors, may have significantly contributed to the recent price action of LINK. However, despite these positive factors, there are still some risks to be aware of, even with the recent bullish momentum.

Chainlink price faces liquidation pressure, here is the reason

Although the recent bullish trend of LINK has been supported by a large amount of liquidity in the spot segment, the demand from derivatives is much higher. This highlights the potential for significant volatility, including liquidation events that may accompany the highly speculative nature of this cryptocurrency.

Currently, the price of LINK has surpassed 25 USD. This is not surprising, especially in the context of the broader cryptocurrency market undergoing significant correction. Notably, the price of Chainlink has reached higher levels while its RSI indicator has hit lower highs compared to last week's peak. LINK recorded a large liquidation of long positions last Thursday, with over 10 million USD worth of LINK being liquidated.

Additionally, the unexpected bullish surge of LINK has triggered a wave of short liquidations, resulting in approximately 6 million USD being liquidated. The recent price action of LINK has demonstrated strong demand, supported by several important fundamental developments. Furthermore, the market's reaction confirms that LINK is one of the top cryptocurrencies favored as liquidity rotation begins to shift towards certain altcoins.

However, despite this bullish trend, LINK may face strong resistance near the price level of 27 USD. This is because the currency has been moving in a cup and handle pattern throughout this year. LINK has approached the upper part of the pattern thanks to the recent surge. However, it remains unclear whether the demand will hold if the price surpasses 27 USD.

Mr. Giáo