Will Chainlink reach $7 ahead of Fed decision?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Sell pressure surged after a recent token unlock.
- LINK was overwhelmed at $6.450 by sellers at press time.
Chainlink’s [LINK] recent developments had counter-effects on price performance. Notably, its CCIP (Cross Chain Inter-Operability Protocol) scored another interest from DTCC (The Depository Trust and Clearing Corporation), a global securities settlement platform, to unlock token asset interoperability.
How much are 1,10,100 LINKs worth today?
But there was a LINK token unlock worth over $100 million a few hours before press time, according to etherscan.io. The move spiked short-term sell-pressure as of press time.
Which way for LINK’s price action?
Considering a possible dovish stance from next week’s FOMC meeting, LINK could sustain the short-term sell pressure. However, this could only be possible if Bitcoin [BTC] doesn’t record excess losses in the next few hours/days.
On the 12-hour timeframe, the $6.450 has been a crucial hurdle in the past few days. However, LINK could attempt to clear it if BTC rallies in case of a dovish FOMC announcement on 20 September.
Such a move will flip the market structure bullish and could present an extra 8% gain if bulls clear another roadblock and bearish order block (OB) of $6.63 – $6.87 (red).
But a decline below $6.20 will invalidate the long idea. Such a reversal could ease at $6.0 or H12 bullish OB above $5.5 (cyan).
The RSI was above 50 but registered a downtick, indicating buying pressure eased slightly at press time. But the CMF has been above the zero mark since late August, showing capital inflows to LINK markets were substantial over the same period.
Chainlink records massive accumulation
Similarly, there was a massive accumulation of LINK tokens since late August, as indicated by the rising 90-day Mean Coin Age. But a sharp drop-off at press time showed network-wide token movement.
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Besides, the spike in Supply on Exchanges (red line) captured the recent token unlock and showed a spike in sell pressure that could delay a move to $7.
Moreover, Network Growth dipped, underscoring a decline in network traction, which could further complicate bulls’ prospects. As such, the above long setup is only possible if the FOMC meeting announcement turns out friendly to buyers.