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- 1 Chainlink price is currently trading at $7.79 while witnessing a loss of -0.66% during the intraday trading session.
- 2 Link prices trade above all the major EMAs.
- 3 The year-to-date return of Chainlink is 39.89% while one weekly return is -1.03%.
Link price has been in an uptrend since the middle of June after the formation of a support level at $5.10 level. Since the past month, Chainlink’s upward trajectory has defied market expectations, as prices surged roughly 66% from the support level and formed a high at $8.464.
If the bullish rally continued, the price would have shattered the annual trend but the move was halted as it reached near $8.464. The price faced strong rejection and retraced to form a support at $7.34.
Chainlink price then bounced back to retest the high but bears did not want the price to rise above $8. It has formed a lower high which indicates that there is a decrease in bullish momentum.
After rejecting $8, the previous candle formed support near $7.70 but the current candle has turned bearish and will soon break the low of the previous candle if bearish momentum persists.
If bears can push the price below $7.70, there is a possibility that prices might melt toward $7.34, causing a loss of 5%. On the other hand, if the Link price can rise above $8, it might head toward the resistance level of $8.40.
ChainLink Marks Highest Amount Of Transaction
The explosive surge was also fueled by the unprecedented level of whale accumulation, as Chainlink registered the highest amount of transactions this year amounting to $1 Million +. Sentiment, an analytics platform’s latest tweet stated that whales increased their accumulation during the surge.
The robust activity suggests that there is a presence of institutions and high net-worth individuals who are betting big on the crypto coin’s future performance. The substantial growth in buying pressure helped Link in leaving its peers in the dust.
The concern is regarding the formation of lower lows which suggests that the buyers have turned less aggressive than before, potentially signaling a slowdown. According to Whalestats, a crypto whale tracker, Link is in the top 10 most purchased tokens among the top 100 ETH whales in the last 24 hours.
Will Link Price Retrace to $7 Level?
The cryptocurrency price trades above 20, 50,100, and 200-day EMAs, indicating bullish momentum, and if the price falls, 20-day EMA might act as a support. Chaikin money flow score has dropped to 0.14 which indicates sellers have started to enter the market but the strength is still left.
The Relative Strength Index (RSI) has also declined to 59.14 and is headed toward the neutral mark indicating higher chances of a downtrend. The long/short ratio is 0.96 with 49.07% longs and 50.93% shorts suggesting a higher position from the selling side in the last 24 hours.
Conclusion
The price action and market structure shows that seller have started to enter into the market and traders should wait for the price to form support before looking for buying bids.
Technical levels
Major support: $7.34 and $6.59
Major resistance: $8.40 and $9.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
