
Will Chainlink Bulls Fall as Selling Pressure Rises? Examining…
The weakness of the Chainlink bulls and the fearful short-term market sentiment does not bode well for LINK.
At the time of writing, Chainlink tested a crucial support level. On-chain and price action clues suggested that the bears might force further losses.
Chainlink rose 2% on June 16th, which appeared to be the beginning of a 16% rally. However, these hopes were dashed in the past 24 hours as Chainlink recorded a 3% price drop until press time. This came alongside an unsteady Bitcoin, whose price action fluctuated based on recent news updates from the Middle East.
As things stand, it is expected that Bitcoin will see a bullish reaction in the range of $102k-$104k and a bearish reaction near $108k-$110k over the coming week.
Chainlink bulls will have a hard time driving a rally
Chainlink offered a good buying opportunity at the time of writing, with a clearly defined exit. The mid-range support at $13.2 is expected to serve as support. However, OBV indicated seller dominance and RSI was bearish. Therefore, despite there being a chance of a rally from the mid-range support, traders should prepare for a price drop below $12.64.
A Bitcoin recovery could once again shift Chainlink’s market sentiment.
A rally from the $13 support would require significant demand to propel the price beyond $14-$14.4, another supply zone. However, this did not appear likely based on weak June price action.
The chart supported the idea that the price might drop to $12.1 or even as low as $10.8.
Exchange netflows data showed some accumulation over the past week. The figure of -261k LINK indicated an outflow worth $3.44 million. An outflow from exchanges is a positive sign, indicating accumulation. Additionally, the 30-day change revealed nearly 79k LINK worth $1.04 million entering exchanges.
In conclusion, the price action and IntoTheBlock data favored a bearish move over the coming days. Traders can use a drop below $12.64 and a subsequent retest of $13 as resistance to look to enter short positions.
Source: ambcrypto.com