Bitcoin dipped to $29.2k on 16 May but was able to climb back above $30k in the past few hours. The heavy trading volume of the past few days was unable to keep BTC below $30k, and a bounce upward could be seen toward $32k and even as high as $36k.
This, in turn, could see altcoins rally. However, Chainlink and SushiSwap did not seem to have heavy buying pressure behind them just yet.
Chainlink (LINK)
Source: LINK/USDT on TradingView
Chainlink climbed past the descending trendline resistance on the charts, but it still had the $8 horizontal level of resistance to contend with. The RSI climbed past neutral 50 to show that momentum was starting to sway toward the bullish side on the lower timeframes. It would need to climb past 60 to indicate strong bullish momentum.
However, the A/D sloped slightly downward, even as the price attempted to recover from the $5.7 lows. In the past couple of days, the indicator showed that no significant buying volume was seen even though LINK approached the $8 mark.
Polygon (MATIC)
Source: MATIC/USDT on TradingView
MATIC sunk to the $0.545 level after the recent wave of selling pressure, but at press time the price had managed to recover somewhat. The $0.62-$0.72 zone (cyan box) represents a region of demand which was previously tested in July 2021. In that instance, MATIC was able to rally from these lows to reach the $1.7 mark.
Could a similar scenario unfold? The Awesome Oscillator was on the verge of climbing above the zero line, a signal that momentum was on the bullish side. The Chaikin Money Flow also rose past +0.05 on the hourly chart to denote significant capital flow into the market.
SushiSwap (SUSHI)
Source: SUSHI/USDT on TradingView
A set of Fibonacci retracement levels (white) was drawn based on SUSHI’s drop from $2.176 to $1.082, and the retracement levels plotted are likely to serve as support and resistance levels in the days to come. A move past the 38.2% level at $1.5 would be significant for the bulls, as it would make a further push higher toward $2 more likely.
Similar to the other altcoins analyzed, the RSI showed a possible shift in momentum from bearish to bullish in the past few hours, even though the Stochastic RSI was in the overbought territory. However, worryingly for SUSHI bulls, there did not seem to be a significant amount of demand as per the OBV, which would need to push much higher to signal some buyer strength.
