Connect with us
Active Currencies 13961
Market Cap $2,386,161,378,422.69
Bitcoin Share 51.44%
24h Market Cap Change $0.99

LINK’s sellers can target these levels for more shorting opportunities

2min Read

Chainlink buyers continued to lose more ground, as sellers extended the price retracement.

Share this article

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

  • Sellers extended retracement with the price sinking below another support level.
  • A drop in Open Interest indicated a growing bearish sentiment.

Chainlink [LINK] buyers continued to lose more ground, as sellers extended the price retracement.


Read Chainlink’s [LINK] Price Prediction 2023-24


An earlier analysis of LINK from AMBCrypto dated 8 October highlighted the possibility of the ongoing retracement being a minor correction before the continuation of the bullish uptrend. This was due to the demand in the futures market.

However, this analysis hasn’t been validated with LINK trading below the 38.2% Fib level.

Can sellers flip LINK bearish in the short term?

Chainlink LINK price chart

Source: LINK/USDT on Trading View

LINK’s massive uptrend saw it end September on a high, reaching the $8.2 price zone. However, October brought bearish candles with it. The retracement from the $8 price zone has seen bears claim two key price levels.

The 23.6% Fib ($7.69) and $38.2% Fib ($7.31) have fallen to the recent selling pressure on LINK. After the sharp retracement took LINK below the 23.6% Fib, buyers mounted a brief defense over a week-long period before sellers flipped the 38.2% Fib to resistance too.

With the price currently trading above the 50% Fib ($7.01), a break of the level by sellers could flip LINK bearish on the higher timeframes. As such, sellers can target a 3.5% profit margin from the current price level to the 50% Fib.

In the meantime, the Relative Strength Index (RSI) highlighted the selling pressure, as it continued to trend downwards under the neutral 50. The On Balance Volume (OBV) continued to oscillate, as it tried to form a sustained downtrend.

Open Interest declined along with the price

Source: Coinalyze

The bearish momentum was clearly evident in the derivates market. According to Coinalyze, LINK’s Open Interest (OI) declined by 1.86% over the past 24 hours. This decline along with price hinted at a strong bearish bias.


How much are 1,10,100 LINKs worth today?


Similarly, the spot Cumulative Volume Delta (CVD) trended lower with very little demand for LINK. This could see sellers extend their leverage and flip LINK bearish in the short term.

Share

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.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.