Chainlink: Can LINK bulls push their way past the $7 price point?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LINK broke out of a month-long range formation with 11% gains over the past 48 hours.
- The exchange long/short ratio showed buyers were actively bidding for further gains.
Chainlink’s [LINK] bullish breakout took the altcoin to the critical $7 price level. An earlier price report highlighted the slim possibility of LINK getting to the $7 price level, due to a significant token unlock.
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However, the return of the bullish conviction to the markets along with Bitcoin [BTC] reclaiming the $27k price zone brought good gains for LINK.
Is the buying pressure enough to clear the $7 roadblock?
LINK traded sideways between the $6 support and $6.4 resistance levels over a month-long period. A look at the 12-hour timeframe revealed bulls gained the upper hand on 18 September with 11% gains. This pushed LINK past the $6.4 resistance level.
While the higher timeframes showed a price rejection at the $7 level, the lower timeframes showed that bullish momentum was still present.
This was echoed by the Relative Strength Index (RSI) hovering at the overbought zone to signal strong buying pressure. The Moving Average Convergence Divergence (MACD) was also bullish, as it stayed above the zero mark with multiple green bars.
If the bullish momentum sustains, buyers can expect to flip the $7 resistance and register further gains at $7.5 to $8. Else, a rejection at the resistance level could see LINK fall into another range between $6.4 to $7.
Buyers remained ahead in the derivatives market
How much are 1,10,100 LINKs worth today?
The one-hour timeframe for the exchange long/short ratio showed buyers firmly in the lead. Longs held 52.93% share of the open contracts which translated to a $2 million difference between longs and shorts. As such, a break above the $7 price level would extend the bullish rally.