Analysis

Chainlink reclaims July low of $6 – Can it push forward?

LINK reclaimed the $6 resistance as of press time, but faced key overhead hurdles to flip higher time-frame market structure to bullish.

Published

1 year ago

on

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • LINK registered some recovery after the SWIFT collaboration.
  • There was considerable liquidity at $6.14 and $6.15.

Chainlink [LINK] recently ran a successful blockchain experiment with Swift to unlock the potential of asset tokenization. Its native token, LINK, exhibited bullish intent after the news and recovered some lost ground in September, pushing it above the $6 resistance level as of press time. 

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Can LINK push higher to $6.45?

Source: LINK/USDT on TradingView

The $6 level was a July low and a crucial resistance level after being breached during the August price dump. 

Although reclaiming the resistance level was a bullish intent, it didn’t flip the H12 market structure to bullish. A bullish market structure could occur if LTC pushes above the recent lower high of $6.32. 

The next key resistance levels bulls need to clear to advance further are the 50-EMA (Exponential Moving Average) of $6.35 and $6.45. 

Any faltering and subsequent drop below $6 again could ease at the H12 bullish order block (OB) of $5.51 – $5.72 (cyan). The zone stopped the mid-August plunge and price slump on 31 August. So, it could come to the bulls’ rescue again if sellers front another onslaught. 

As positive Chaikin Money Flow (CMF) indicated, capital inflows to the LINK market were substantive. But the Relative Strength Index was yet to cross the 50-neutral mark to confirm further buying pressure. 

The futures market was bullish on LINK, but…

Source: CryptoMeter

According to CryptoMeter, more LINK shorts were rekt ($72k) in the last 24 hours before press time. Over the same period, only $28k worth of longs were liquidated, underscoring the bullish bias in the futures market. 

How much are

1,10,100 LINKs worth today? 

On the contrary, the overall market registered over $15 million in liquidations over the same period. Longs ($9.3 million) suffered more liquidations than shorts ($6.3 million). 

According to Coinglass’s weekly liquidation map, there was significant liquidity at $6.14 and $6.15. So, LINK could see a substantial price reaction at these levels, making the dynamic 50-EMA and $6.45 sticky resistance levels. 

Source: Coinglass

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