With LINK unable to hold onto $6 support, traders can expect this…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LINK dipped below the $6 support on lower timeframes.
- Longs suffered 95% of liquidations over the past 24 hours.
The selling pressure on Chainlink [LINK] took the altcoin below the $6 support level on the lower timeframes. This was after multiple bearish attempts over the past week were re-buffed by bulls.
Realistic or not, here’s LINK’s market cap in BTC terms
With sellers extending their dominance in the crypto markets, Bitcoin’s [BTC] dwindling price action could see LINK sink lower.
No way up for bulls
Since 17 August, LINK has hovered just above the $6 support level. With the level serving as a springboard for bulls in late June, the possibility of a price bounce existed.
However, the selling pressure throughout August that saw LINK drop by 20% gave bears the upper hand. The H4 timeframe saw successive bearish candles below the $6 support giving sellers a massive advantage to extend gains.
As of press time, the Relative Strength Index (RSI) continued to float in the oversold zone. This highlighted the major lack of buying pressure. Similarly, the On Balance Volume (OBV) continued to drop rapidly, hinting at a lack of demand for LINK.
Sellers could target the $5 – $5.5 level, especially if BTC isn’t able to recover. On the other hand, bulls could rally again from this level on the 12-hour or daily timeframe with a strong bullish candle.
Longs deep in the red
The 24-hour liquidation data from Coinglass showed that longs suffered the majority of liquidations. Long positions worth $367.86K were wrecked accounting for 95.5% of the total liquidations within the period.
How much are 1,10,100 LINKs worth today?
With LINK’s market structure firmly bearish and buyers in the futures market recording losses, a bullish rebound might not materialize soon.