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