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Chainlink [LINK] hits Q1 2023 price ceiling- Will sellers prevail

2min Read

LINK recovered all the losses made in March and could move forward to target the pre-FTX level. However, the increasing short-term selling pressure could be a hindrance.

Chainlink [LINK] hits Q1 2023 price ceiling- Will sellers prevail

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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 strongly bullish on the 12-hour chart.
  • There was increased short-term selling pressure. 

Chainlink [LINK], like most altcoins, managed to recover losses made in mid-March during the U.S. banking crisis and overall market uncertainty.

It rose from $6, consolidated, then surged to $8.5 at the time of writing. Overall, LINK rallied over 40% since mid-March but had hit a key Q1 2023 price ceiling that could invite sellers unless Bitcoin [BTC] remains bullish. 

Read Chainlink [LINK] Price Prediction 2023-24

Chainlink [LINK] network has seen more integration of its services across Ethereum [ETH], Arbitrium [ARB], and Polygon [MATIC].

Can the new integrations prop up its native LINK’s value in the long term? 

A likely new high or an impending pullback?

Source: LINK/USDT on TradingView

LINK’s first leg of recovery ended in a price consolidation between $6.86 – $7.64. The second leg of recovery broke above the parallel channel and hit the bullish target of $8.4, setting LINK to reclaim its Q1 2023 level. The level was also a key resistance level in September 2022. 

As such, the uptrend momentum could slow down or enter a pullback, especially if BTC fails to reclaim the $30k level. If that is the case, LINK could retrace to $7.947 or the former channel’s upper boundary of $7.64. The dynamic 50-EMA and 200-MA support levels could check any further drop below $7.64. 

A session close above $8.5 will be an invalidation. Such an upswing, especially if BTC surges beyond $30.4k, could tip LINK to target its pre-FTX levels of $9.0 – $9.5.  

Meanwhile, RSI and the stochastic RSI have hit the overbought zone, reinforcing the bullish sentiment. But the overbought condition may tip bulls to take a break to cool off from the recent rally.

Nevertheless, the ADX (Average Directional Index) rose sharply – suggesting a stronger uptrend at press time. 

Trading volumes and selling pressure increased

Source: Santiment

Is your portfolio green? Check LINK Profit Calculator 

LINK’s trading volume dropped to its lowest around 9 April. After that, it improved despite a few fluctuations, as shown by the active addresses (yellow bars). In addition, the funding rates remained positive, reinforcing a good demand and bullish outlook from the derivatives market. 

However, there was increasing short-term selling pressure despite LINK’s bullish momentum, as denoted by rising supply on exchanges.

Besides, the drop in supply outside of exchanges, at the time of writing, showed a decline in the accumulation as some investors lock in short-term gains.


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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