Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Chainlink [LINK] hit a crucial sell pressure zone above $7.5.
- LINK’s open interest (OI) surged but may face headwinds.
Chainlink [LINK] has been in a consolidation phase for the past few weeks. It oscillated between a critical supply (red) and demand (green) zone. So far, the supply zone above $7.5 has proved a challenge to bulls.
Read Chainlink’s [LINK] Price Prediction 2023-24
Can bulls bypass the sell pressure zone?
Source: LINK/USDT on TradingView
LINK was bullish on the 12-hour chart, as shown by the RSI’s value. Similarly, the OBV (On Balance Volume) has risen, boosting the recent uptrend but faced a downtick at press time. But LINK has reached the sell pressure area (red) of $7.520 and $7.813.
The zone has also been a critical resistance level on the three-hour charts. As a result, bulls may still find difficulty overcoming it, especially if BTC fails to reclaim the $25K level.
Ergo, bears could profit from short-selling opportunities at $7.529, or $7.292, if the price correction extends toward the demand zone (green). The $7.003 or $6.669 levels can also be ideal buying opportunities, so sellers can lock profits at these levels.
Is your portfolio green? Check out the LINK Profit Calculator
A session close and confirmation above the supply zone will give bulls a clear view to target the $8 value and the pre-FTX level of $9. But the upswing will invalidate the above bearish bias.
LINK’s open interest rate increased, but …
Source: Coinglass
As per Coinglass, LINK’s open interest (OI) rate increased tremendously from 17 February. It shows a massive demand for the altcoin in the futures market, thus reinforcing the bullish sentiment, at the time of writing.
In addition, over $550K worth of short-positons were liquidated in the past 24 hours alone, according to Coinalyze. This further lends credence to a possible extra rally. However, close to $100K worth of long-positions has been rekt, too. This calls for caution.
An upswing above $7.5 and steadily rising OI will give bulls impetus to target the $8. However, any drop in OI will provide bears with more market influence.
Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating.
Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him.
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The popular cryptocurrency Chainlink has recently hit a key supply zone and has encountered a wave of selling pressure. This is the latest in a series of events that have prompted many investors to wonder whether the current bullish market can survive in such volatile times.
The key supply zone, at $18.00, has frequently been a difficult hurdle for bulls to overcome in the past. This means that any sustained selling pressure could cause the price to rapidly drop, throwing existing bullish sentiment into doubt. Furthermore, the fear of another pullback could cause some investors to look to reduce their portfolios, which would put additional selling pressure on Chainlink.
However, many analysts remain optimistic about the cryptocurrency’s future prospects. While a decrease may happen in the short term, they anticipate that any losses are likely to be short lived. Fundamentally, Chainlink is in a strong position with strong fundamentals and high liquidity. In addition, the extensive network of partners and collaborations within the decentralized finance (DeFi) space should continue to provide support for the cryptocurrency.
Overall, it is crucial for bulls to weather the current selling pressure if Chainlink is to remain bullish in the long term. A quick recovery of the decline, or an upward trend in the midst of the current pressure, would bode well for the cryptocurrency’s future development. With that said, it will be important to keep a close eye on the market’s reaction over the coming days and weeks.
