March 25, 2023

Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice

To accelerate previous bull run, Chainlink [LINK] Buyers sparked a month-long wedge-shaped rally into mid-August. But the bears found fresh selling pressure at the $9.2 ceiling, as they have for the past three months.

Meanwhile, the price struggled to stay above the daily EMA ribbon. The current pattern could reignite short-term declines before buying makes a comeback. At press time, LINK was trading at $6.866, down 5.6% over the past 24 hours.

LINK daily chart

Source: TradingView, LINK/USDT

LINK buyers reclaimed $8 levels since falling to a two-year low on June 13. But the rally proved significant after the expected rupture of the rising wedge.

Therefore, price action broke below the EMA ribbon to confirm selling advantage. But with support at $6.7 posing a near-term hurdle for sellers, any reversal could spark a relatively slow-moving phase on the charts.

In this case, price action may hover around the point of control (POC, red) for a while before changing the trend.

one potential close the following $6.7 level The gateway can be opened for testing $6.3 zone. After launch, buyers will try to maintain an edge. But a striking bearish crossover on the EMA ribbon can create a market in favor of the bears.


Source: TradingView, LINK/USDT

At the time of writing, the Relative Strength Index (RSI) is entering bearish territory. The index has traded sideways and must reclaim a position above its midline to forecast long-term buying advantage.

Also, the Chaikin Money Flow (CMF) echoed the weak reading on the RSI, indicating weak purchasing power.

Continued positions below the zero mark may ease buying pressure.

Most importantly, the -DI for the Directional Movement Index (DMI) is still looking north.that’s it Buyers have to wait A potential bullish crossover with +DI before taking a long position.

in conclusion

A bearish flag setup along with weak readings and low volumes on the indicator put LINK in a rather fragile state. Buyers must step in to defend the $6.7 area against additional losses. The goal will be the same as above.

Any bearish invalidation could see a weak phase near the POC area. Finally, overall market sentiment analysis is crucial to complement technical factors for profitable moves.

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