Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Sellers exerted excessive control over Chainlink’s [LINK] market from mid-April. In fact, a recent report established that over 80% of LINK holders were at a loss after LINK dipped below $6.
However, LINK fronted a short-term trend reversal, crossing $6.6 at press time. The recovery followed BTC’s pump from $26.2 to over $27k over the weekend.
Can bulls push beyond $6.8?
Source: LINK/USDT on TradingView
LINK’s price action in the past three weeks chalked a short-term range formation with range extremes at $6.2 and $6.8. The range low of $6.2 aligned with a bullish order block (OB) of $6.3 – $6.4 (red) formed on 12 May on the four-hour chart.
The high range also aligned with the late March/April support level. As such, bulls were not only facing a range-high hurdle but a key support-cum-resistance level. Furthermore, a negative price reaction at this level could drag LINK to lower support levels.
If that’s the case, sellers could re-enter at the range high, targeting the mid-range or range-low levels of $6.5 and $6.2, respectively.
Conversely, a close above $7 will invalidate this bearish thesis. Such an upswing, especially if BTC reclaims $28k, could rally LINK to overhead resistance levels at $7.1 and $7.3.
Meanwhile, the Relative Strength Index (RSI) hit the overbought zone while On-Balance Volume (OBV) edged higher, reiterating buying pressure and demand increased in the past few days.
CVD spot wavered
Source: Coinalyze
How much are 1,10,100 LINKs worth today?
The Cumulative Volume Delta (CVD) metric on the one-hour chart wavered since 25 May. This confirmed buyers and sellers had near-equal market control in the past four days.
On the open interest (OI) rates front, LINK saw a decline from about $145 million peak in the first half of May to below $130 million in the second half. The drop in OI could undermine a strong rally beyond $6.8.
However, a bullish BTC in $28k will invalidate the above bearish scenario.
Source: Coinglass (LINK’s Open Interest rates)
