• Chainlink [LINK] has been trading sideways since the end of March with a range between $6.848 and $7.623.
• Despite the consolidation phase, monthly and quarterly LINK HODLers saw gains as 30-day and 90-day MVRV improved positively.
• Bulls could seek buying opportunities if LINK hits the lower boundary of $6.848, while sellers must clear the obstacles at 50 MA ($7.108) and 200 EMA ( exponential moving average) of $7.021 to gain leverage.
Chainlink [LINK] Consolidation Phase
The price action of Chainlink [LINK] has been firmly within the upper range of $6.848 and $7.623 since the end of March, indicating that bulls were adamant about exiting their position – a bullish signal. However, this upper range boundary has been acting as a key supply area for LINK, thwarting any uptrend momentum beyond it.
Buying and Selling Pressure
The Relative Strength Index (RSI) has fluctuated between 50 and 60 levels in the past few days, which shows that buying and selling pressure have remained relatively equal since 17 March. Conversely, Average Directional Index (ADX) moved southwards which means that the uptrend momentum seen in mid-March weakened and further consolidation or retracement could be likely for LINK price action.
Monthly & Quarterly HODLers Gains
Despite the price consolidation phase, monthly and quarterly LINK HODLers enjoyed profits as 30-day MVRV (Market Value to Realized Value) improved positively according to Santiment analysis data . However, these profits could be threatened if LINK experiences more downward pressure after hitting the supply area near $7.6
Shorting & Buying Opportunities
As per current trend indication, LINK could sink to its mid-range level or channel’s lower boundary around $7240 or $6848 respectively offering shorting opportunities for sellers however buyers can seek buying opportunities if LINK hits lower boundary of 6848$. If bulls overcome then next likely target will be 7947$.
Conclusion
In conclusion Chainlink [LINK] is currently trading in sideways pattern between 6848$ to 7623$ with mid level resistance near 7240$, Traders can look for shorting opportunity below 7240$ with targets near 6848$ but should watch out for resistance near 7623$.