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Chainlink: Bulls secured $7 support, can they push forward

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Chainlink [LINK] edged higher after BTC reclaimed the $28k price range. Is the short-term recovery sustainable, given next week’s FOMC meeting?

Chainlink: Bulls secured $7 support, can they push forward

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • LINK was neutral on the 4-hour chart.
  • Limited demand and elevated selling pressure may favor bears.

Chainlink [LINK] has been consolidating near the $7 support and psychological level for the past five days. The asset edged higher in the past few hours before press time, retesting the dynamic 50-EMA ($7.342). The slight upsurge followed Bitcoin’s [BTC] rise from $27.2k to $28.6k on 25 April.  

Read Chainlink [LINK] Price Prediction 2023-24

The mild BTC’s bullish sentiment could be attributed to the increased banking fears after First Republic Bank’s stock plunged 50% following the revelation of a massive drop in deposits.

However, next week’s (2-3 May) FOMC announcement could affect the above sentiment and whipsaw both assets. 

Are more price rejections likely below $7.5?

Source: LINK/USDT on TradingView

The price rejection at 50-EMA could push LINK to retest the $7 support before a likely rebound if bulls continue to secure the support. Notably, the 200-MA is also slightly above the 50-EMA – forming extra resistance against bulls’ attempted recovery. But the 200-MA continues to move horizontally – suggesting a likely consolidation. 

As such, the pair could oscillate between the $7 support and the moving averages in the next few hours/days. A close above the moving averages could set the pair to rally to $7.726 before facing more resistance from bears. 

Conversely, a drop below the $7 support could sink the pair toward the lower support levels. Therefore, sellers could take a break near $6.5 or March’s swing low of $5.9. 

The RSI retreated from the oversold zone, indicating buying pressure increased, but the neutral position at press time means the pair can go in either direction. However, the OBV dipped, reinforcing a limited demand and highly elevated selling pressure. 

Supply on exchanges increased

Source: Santiment

Is your portfolio green? Check LINK Profit Calculator 

On-chain metrics indicated LINK faced limited demand alongside elevated selling pressure, which may undermine a strong short-term recovery.

Notably, the supply on exchanges increased – reiterating more LINK moved to CEXs for offloading. In addition, accumulation declined further, as seen by the drop in supply outside of exchanges. 

Moreover, the recent surge in active addresses steadied at the time of writing – highlighting limited trading volumes, which could further favor sellers. However, LINK could surge if BTC reclaims the $29k price range. 


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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