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?
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
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Author: Suzuki Shillsalot
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