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Chainlink reverses all June losses, but…

2min Read

Chainlink’s impressive recovery reversed all May/June losses, but there’s one more roadblock to gain further edge.

Chainlink reverses all June losses, but …

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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 hit a roadblock, a bearish order block near $7.
  • Open Interest and funding rates wavered slightly.

Chainlink [LINK] was forced to surrender the $7 psychological level after short-sellers sought entry. Notably, the $7 aligned with a crucial roadblock on the daily chart, which led the recent price pump to cool off at the level. 


Is your portfolio green? Check out the LINK Profit Calculator 


In the meantime, Bitcoin [BTC] extended its range-bound formation of $30k- $31.5k for the third week in a row. The king coin traded near the range-lows at the time of writing, underscoring the short-term selling pressure witnessed over the weekend (15/16 July). 

Can bulls clear the roadblock?

Chainlink [LINK]

Source: LINK/USDT on TradingView

LINK faced price rejection at $7 and eased to $6.84 at the time of writing. When zoomed on the higher timeframe, specifically D1, the $7 aligned with a bearish order block of $6.89 – $7.28 (red) formed on 5 May 2023. 

Back to the H4 chart, Chainlink has been making higher highs since mid-June – an uptrend that reversed all May/June losses. But the recovery hit a roadblock forcing the price to ease to the FVG (fair value gap) of $6.68 – $6.87 (white). 

A breach below the FVG zone will flip the H4 structure to a bearish bias. Such a move could set short-sellers to extend gains to $6.32 or $6.07. As such, the $6.07 – $6.32 could be a price zone of interest for near-term bulls seeking re-entry. 

Conversely, a mount above the bearish OB could be feasible if BTC reclaims the $31k zone again. Such an upswing could set LINK bulls’ focus on $7.62 and $8. 

The RSI and OBV eased, with the RSI retreating near the neutral level. It denotes buying pressure, and demand declined as short-term sell pressure intensified over the weekend. 

Open Interest rates and funding rates wavered

Chainlink [LINK]

Source: Coinalyze


How much are 1,10,100 LINKs worth today


On Coinalyze’s 1-hour chart, LINK’s funding rates briefly turned negative on 15 July before improving slightly at the time of writing. Similarly, the Open Interest (OI) rates dropped from >$120 million at the peak of the price pump on 14 July to nearly $110 million. 

Collectively, it shows wavering demand, which could affect bulls further if the trend extends for the next few hours/days. In that case, the $6.07 – $6.32 zone could be of interest for near-term bulls. 

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Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.
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