Amidst the market turbulence, Chainlink price experienced a V shaped sharp rejection from the hurdle of $20 and returned to its bottom mark of $11. It made a double bottom formation in the last session.
Notably, the token price made consecutive bullish candles, but paused below the 20 day EMA mark. Although it indicates buyer accumulation from the lows, buyers need to initiate a recovery.
To initiate a pullback, the primary hurdle of $15 needs to be crossed, whereas the downside was capped at $11.
At press time, Chainlink was trading at $13.09 with an intraday drop of 1.36%, reflecting neutrality on the charts. It has a monthly return ratio of -17.20% and 112.0% yearly, reflecting short term profit booking.
The pair of LINK/BTC is at 0.000228 BTC, and the market cap is $7.97 Billion. Analysts are neutral and suggest that LINK may recover its gains and could outperform.
Will Chainlink Remain Resilient?
The first week of July was a tough one for most of the crypto assets, characterized by underperformance and bearishness.
LINK is near a vital support zone ($12) and a rise is anticipated. While the sellers have held on to the $15 mark, which was quite difficult for the bulls to cross in the short term.
This might lead to the short term consolidation in the token’s price action and it might spend the next few sessions in a closed range ahead.
Meanwhile, the RSI curve displayed a positive crossover and recuperated from the oversold region, displaying signs of a potential recovery.
What Do Crypto Analysts Say About Chainlink (LINK)
As popular crypto analyst Ali Martinez reported previously in his post, whales amassed over 6.2 million LINK past week
This buildup indicates that the holders remained optimistic for the token. However, the token is near the lower trajectory of $12.
Yet another analyst, Michael Van De Poppe noted tweeted that LINK was trading around its pivot bottom mark of $12 and could recover from there.
Per the GIOM (Global In/Out of the Money) indicator, a metric which shows the active addresses that purchased volumes in a price range.
It shows that around 45% of in-the-money holders are comfortably sitting on profits, while more than 55% of holders are still in trouble, highlighting instability in the token price chart.
As such, if the demand decreases, the token may not cross the $15 mark.
Velocity and Transaction Volume Spikes
Amidst the pause in the token price, rise in transaction volumes signifies a potential up move is on the cards and it could be seen ahead.
Meanwhile, the active addresses remained flat around 3037 which conveys neutral sentiment among the investors.
The sharp surge in velocity value indicates the higher transfers, meaning that there;s a high increase in activity involving LINK.
The immediate support levels for LINK are $11 and $10.20, whereas the key upside hurdle is around $14.30 followed by $15
LINK is below the significant moving averages and paused its gains near the $13 mark. Technicals suggest that it could recover ahead and face the resistance mark of $15.
