• Chainlink’s [LINK] rally has hit a key sticky resistance level which could attract sellers.
• Price action constricted tightly between Exponential Moving Averages (50-EMA/100EMA).
• Bitcoin [BTC] faced difficulty holding above $27k at press time, exposing LINK to more short-term downside prospects.
Chainlink [LINK] Rallied But Faced Resistance
Chainlink’s [LINK] rally has hit a key sticky resistance level which could attract sellers, especially if BTC fails to maintain a hold of $27k decisively. The recovery eased near $6.748 and was met with increased short-term selling pressure. However, LINK bulls found steady ground and fronted a recovery after sinking to $6.3 on 12 May.
Consolidation or Breakout?
In the past four days, price action constricted tightly between Exponential Moving Averages (50-EMA/100EMA). It needs to be seen who will inflict a breakout – bulls or bears? Bitcoin [BTC] faced difficulty holding above $27k at press time, putting LINK at risk of further downside prospects in the coming hours/days if BTC continues to fluctuate below this point.
Price Indicators Show Mixed Signals
The Relative Strength Index (RSI) indicated improved buying pressure as it fluctuated above the median level in the past few days. Meanwhile, On Balance Volume (OBV) also increased as demand improved during this period. However, Santiment metrics revealed that spikes in LINK’s supply on exchanges remained consistent since early April while supply outside of exchanges declined in the same period – indicating more sellers entering into the market than buyers.
Can Bulls Push Prices Higher?
Despite these bearish indicators, bulls still have an opportunity to push prices higher if they manage to break through the 100 EMA dynamic resistance point near $6.748 and sustain their position above this mark for some time before selling pressure kicks in again. The next move could make or break LINK’s short-term trend so traders should be careful when making decisions related to this cryptocurrency going forward.
Overall, LINK is currently stuck between two pivotal support and resistance levels with neither side having full control over price movements yet – leading us into an uncertain scenario where anything can happen within the next few hours or days depending on how Bitcoin’s price plays out as well as other external factors such as news announcements etc.. Therefore traders should monitor both technical and fundamental indicators closely before jumping into any positions related to Chainlink’s [LINK].