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Chainlink [LINK] hits a key hurdle – Is a reversal likely? 

2min Read

LINK has mounted above March low but must clear above bearish OB near $6.3 to give bulls an edge. Can bulls surmount the hurdle?

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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’s recovery has eased at March low 
  • Buying volumes and Open Interest rates decreased 

Chainlink [LINK] chalked a sideways structure ahead of ECB (EU Central Bank) Forum on Central Banking scheduled for 28 June 2023. US Fed Chair Jerome Powell will also grace the meeting, and investors are particularly eyeing his speech. 


Read Chainlink [LINK] Price Prediction 2023-24 


 Market direction after the meeting could depend on whether key speeches take a hawkish or dovish stance. In the meantime, BTC fluctuated above $30k while LINK’s range formation extended within $5.9 – $6.3. 

Will LINK lose hold of the March low?

Source: LINK/USDT on TradingView

LINK’s structure was bullish on the daily timeframe after climbing above the March low of $5.917. But that’s just a bullish intent and not an outright uptrend. Besides, a bearish order block (OB) exists on the daily chart at $6.0 – $6.3 (red). So, bulls could only claim leverage if they move above $6.3. 

The Relative Strength Index (RSI) had eased from the overbought zone and slid below the 50-mark – emphasizing a sharp decline in buying pressure. Similarly, the On-Balance Volume (OBV) moved sideways, indicating demand stagnated in the past few days. 

A negative price reaction at the confluence of the March low and the bearish OB could drag LINK to the lower high and previous range-high of $5.4. The next immediate support level is $5.0. 

Conversely, a move above $6.3 will make $6.66 and $7.7 the next target for near-term bulls. But such an upswing will depend on BTC’s upside above $31.4k. 

Buying volumes eased

Source: Coinalyze

Despite the rising Open Interest (OI) rates between 20 – 24 June, Cumulative Volume Delta (CVD) spot eased significantly. It shows the rising demand (uptick in OI) in the futures market didn’t drive massive buying pressure on the spot side. 


Is your portfolio green? Check out the LINK Profit Calculator


But both metrics declined in the past few hours at the time of writing. It paints a short-term bearish outlook for LINK. Bulls can wait for a pullback retest on $5.9 or $5.4 to go long, provided BTC remains bullish. 

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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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