- LINK was bullish, with a 20% upside potential against a bearish order block at $8,965
- LINK’s short- and long-term holders saw gains.
connect string (Link) down 30% since November 21. At press time, it is trading at $7,527 and on the verge of a potential 20% upside against a bearish order block target.
In other news, Chainlink Labs has launched a policyProof of reserveswhich allows users to confirm and determine whether the exchange’s “proof of reserves” is true or false. In addition, LINK will launch an intervention service on December 6, 2022.
The aforementioned increase in LINK usability may help drive higher prices.
Do the bulls have what it takes to restore LINK’s value before the market crashes?
LINK can recover its pre-crash value. But it is facing major resistance at $8,097 since September.
However, it broke through this resistance on November 4 before the price correction started. After the correction, it was ready for another rally, but FTX saga turned the bullish trend into bearish.
LINK is now targeting the $9.5 level of the pre-FTX epic. The target could be between the bearish order block at $8.965 and $9.5 over the next few days or weeks. But can the bulls push through this bullish trend?
Both the Relative Strength Index (RSI) and Balance Volume (OBV) technical indicators suggest that the bulls could make it. At the time of publication, the RSI is at 57, having risen from the lower regions bordering the oversold entry zone. This showed that the bulls were steadily gaining leverage in the market.
OBV has also been rising sharply in recent days, which indicates a huge volume that may increase buying pressure. Therefore, LINK could break through the 61.8% and 78.6% Fibonacci resistance levels.
However, a daily close below the $7,245 support would invalidate the above bias. In such a situation, LINK may find a new support against the 38.2% Fibonacci level (7.038 USD). The stop around this Fibonacci pocket provides a good risk/reward ratio for long positions.
LINK earnings have been recorded
According to Santiment, the 365-day MVRV has been in positive territory, indicating that long-term LINK holders have made a profit. Interestingly, short-term LINK holders also posted gains.
In addition, the growth of the LINK network has increased since November 26. During the same period, the price of LINK has also increased. However, the network’s growth is down slightly at the time of this publication.
However, if BTC holds the $17k mark and continues higher, LINK may break the resistance in the north. However, any bearish sentiment towards bitcoin would undermine LINK’s price recovery.