Has Chainlink started a rally towards $9.4? Here are some levels to watch out for

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice

  • The market structure has been bearish but the recent rally may change that
  • Foreign currency inflows also increased dramatically

Chainlink has seen some positive news in the past few days amid the market carnage in the aftermath of the FTX crisis. Active addresses rose to the level we saw earlier in May 2021. This could be a sign that Chainlink’s recovery could be strong.

Read the Chainlink 2023-24 price prediction

Bitcoin saw a drop to $15.4000 earlier this week, but that quickly reversed in the last 24 hours of trading. Was this upward movement the true beginning of progress, or was it just a bull trap?

Chainlink again climbs above $6.2 but the bulls still have to fight the bearish pressure

Source: LINK / USDT on TradingView

Chainlink has been trading in a (yellow) range since May. This range was from $9.45 to $5.62. In recent days, the range bottoms have been respected again and the price has bounced there. Volume also increased on the rise from $5.6, indicating that some demand was behind the move.

However, on the one-day chart, the price is still having a bearish structure. LINK is needed to turn the $6.5-$6.65 area from resistance into support before the bulls can have some confidence in a move towards $7.5 and above.

The RSI remained below the neutral 50 mark to highlight that the bulls are not yet in control of LINK’s direction. Meanwhile, OBV has also broken below the highs it formed in October. This was a setback for buyers, who have shown steady buying pressure since mid-July.

The $6.2 level was also breached on the recent rally on the lower time frame, and a retest of the same level could offer short-term traders a buying opportunity. For the longer-term traders, it was possible to buy in the $5.6-$6.2 area for a retest with bullish targets of $7.5 and $9.4. This idea could be invalidated by a session closing below the $5.6 mark.

The circulatory comfort and internal exchange are seeing a massive peak

Chainlink is starting to recover from the lower ranges as bullish impulses emerge

Source: feeling

Development activity has increased over the past two weeks. Investors with a long time horizon can take heart from the fact that Chainlink has seen a good amount of development activity over the past few months that has not correlated with price action.

The flow of drainage has seen a huge rise in recent days. This showed a large influx of LINK tokens into exchange wallets. It was not clear if the wave of sales would follow, or if the tokens were deposited for derivative purposes. But a short scenario was something that traders had to keep in mind.

Passive trading also saw a big peak on November 22 while the price rose from $5.6. Once again, traders had to be wary of an increase in passive trading. However, over the past three months, the peak in passive trading has not necessarily been followed by the price collapse.

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