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Will Chainlink’s recovery halt at this roadblock? 

2min Read

LINK recovery could stall again near its mid-range level, aligning with a bearish order block.

Will Chainlink’s recovery falter at this roadblock? 

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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.

Chainlink’s [LINK] recovery in late May stalled at $6.635, just above its mid-range. After that, sellers took control of the market and extended gains close to the range low of $6.2. 

The downswing followed Bitcoin’s [BTC] price rejection at $28k. Although the king coin reclaimed $27k at press time, it was yet to flip its higher timeframe market structure into bullish. 

Will sellers regain control?

Chainlink LINK Santiment

Source: LINK/USDT on TradingView

LINK has been trading in a range since 8 May, with range extremes at $6.2 and $6.8. The range low of $6.2 also aligns with a bullish order block (OB) of $6.25 – $6.4 (white) formed on the 4-hour chart. The bearish OB of $6.51 – $6.64 (red) also aligns with the mid-range level of $6.53. 

Unless BTC surges to $28k, LINK bulls could face difficulty bypassing the bearish order block (OB). The roadblock could set LINK to head southwards to the bullish OB ($6.25 – $6.4) or the range low of $6.2. 

A session close above $6.635 will invalidate the above bearish thesis. Such an impulse move, especially if BTC retests $27.8k or $28k, could tip LINK to rally towards the range high of $6.8. 

In the meantime, the RSI had retreated from lower ranges and crossed the 50 mark – buying pressure improved. Despite OBV’s slight uptick, it has been making lower lows since late April – declining overall demand in the same period. 

Bulls had little leverage

Source: Coinglass


Is your portfolio green? Check out the LINK Profit Calculator 


At press time, long positions dominated exchanges at 52%, denoting a bullish outlook on the 4-hour timeframe in the futures market. But sellers couldn’t be overruled yet, given the roadblock above the mid-range level. 

However, a bullish BTC could tip Chainlink bulls to smash the bearish OB and target the range high. Thus, traders should track this front before making moves. 

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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.
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