Chainlink: Price correction or bullish exhaustion?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LINK hit a familiar hurdle at the $8.1 resistance, leading to an 11% drop.
- Buyers were still active, with a dominant share of the Exchange Long/Short Ratio.
The price height of the $8.1 level once again stood in the way of Chainlink [LINK] bulls, with a price retracement taking the altcoin past the $7.6 support level.
Read Chainlink’s [LINK] Price Prediction 2023-24
Earlier, LINK had gone on a mazy bullish rally in September that saw it register over 40% gains between 12 September and 30 September.
However, October began on a bearish note with an 11% drop, halting bulls from recording another year-high.
Bulls can’t cross major selling hurdle
A look southward revealed the strength of bears at the $8.1 price zone. The strong bullish run in July met its end at the price level, ushering in massive selling pressure in Q2 that sunk LINK to the $6 price zone.
The second attempt to flip the $8.1 resistance level met the same fate, with sellers unwilling to give up their bearish stronghold.
The on-chart indicators showed that the inability of bulls to flip the level might have been due to profit-taking moves by LINK traders. The CMF (Chaikin Money Flow) highlighted the sudden outflow of capital, dropping from +0.16 to -0.06.
The RSI (Relative Strength Index) also fell out of the overbought zone and hovered over the neutral 50 mark. This reflected the loss of buying pressure.
A resumption of the bullish rally would be dependent on buyers regaining the $7.6 support level. Else, sellers could drive the price toward the next support at $7.
Buyers still in the game
How much are 1,10,100 LINKs worth today?
The Exchange Long/Short data showed that buyers were still very active at press time. Longs dominated the open contracts ratio with a 51.23% share, amounting to $185.19 million.
This signaled that the ongoing retracement could be a minor correction before the continuation of the bullish uptrend.