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Chainlink hits a key supply zone – Can bulls weather the selling pressure?

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Chainlink hits a key supply zone - Can bulls weather the selling pressure?

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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

  • Chainlink [LINK] hit a crucial sell pressure zone above $7.5.
  • LINK’s open interest (OI) surged but may face headwinds.

Chainlink [LINK] has been in a consolidation phase for the past few weeks. It oscillated between a critical supply (red) and demand (green) zone. So far, the supply zone above $7.5 has proved a challenge to bulls. 

Read Chainlink’s [LINK] Price Prediction 2023-24

Can bulls bypass the sell pressure zone?

Source: LINK/USDT on TradingView

LINK was bullish on the 12-hour chart, as shown by the RSI’s value. Similarly, the OBV (On Balance Volume) has risen, boosting the recent uptrend but faced a downtick at press time. But LINK has reached the sell pressure area (red) of $7.520 and $7.813. 

The zone has also been a critical resistance level on the three-hour charts. As a result, bulls may still find difficulty overcoming it, especially if BTC fails to reclaim the $25K level. 

Ergo, bears could profit from short-selling opportunities at $7.529, or $7.292, if the price correction extends toward the demand zone (green). The $7.003 or $6.669 levels can also be ideal buying opportunities, so sellers can lock profits at these levels. 

Is your portfolio green? Check out the LINK Profit Calculator

A session close and confirmation above the supply zone will give bulls a clear view to target the $8 value and the pre-FTX level of $9. But the upswing will invalidate the above bearish bias.

LINK’s open interest rate increased, but …

Source: Coinglass

As per Coinglass, LINK’s open interest (OI) rate increased tremendously from 17 February. It shows a massive demand for the altcoin in the futures market, thus reinforcing the bullish sentiment, at the time of writing. 

In addition, over $550K worth of short-positons were liquidated in the past 24 hours alone, according to Coinalyze. This further lends credence to a possible extra rally. However, close to $100K worth of long-positions has been rekt, too. This calls for caution. 

An upswing above $7.5 and steadily rising OI will give bulls impetus to target the $8. However, any drop in OI will provide bears with more market influence.


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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