Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
LINK faced a price rejection in the $7,500 selling pressure zone.
Holders still enjoyed profits.
Chain links [LINK] the uptrend momentum faced a critical short-term block. LINK dropped sharply by 6% after hitting the aforementioned crucial selling pressure zone. The value fell from $7,484, but the plunge stopped at $7,065.
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At the time of writing, LINK was valued at $7,098 and could break a critical support level in the coming hours if Bitcoin [BTC] fails to regain the $23.5K level.
The $7,075 Support: Can It Hold?
At the time of writing, LINK’s Relative Strength Index (RSI) was 49, indicating a near-neutral structure that tends towards a bearish bias. Therefore, bears could take control of the market, especially if BTC drops below the $23.5K level.
Read Chain link [LINK] Price prediction 2023-24
Such a move could allow LINK to break below the $7,065 support level and settle at $7,013 or $6,886 in the coming hours. This would provide short-selling opportunities.
However, a break above the $7,171 threshold would invalidate the above bias. Such an uptick would tip LINK bulls to break above the bearish order block at $7,306 and retest the selling pressure area at $7,500.
Investors and swing traders should be following BTC’s price action, especially along the $23.5K price level. Any fall below the level would tip LINK bears to devalue the asset in the near term, while a rise above that would push LINK’s value to $7,306.
LINK’s active addresses per hour spiked, but sentiment turned negative
According to Santiment data, LINK’s active addresses spiked in the past hour, indicating more accounts were trading the asset, which could increase trading volume and buying pressure. If the spikes continue, the $7.065 support may hold.
However, any drop in active addresses would tip to devalue the asset. In addition, LINK’s sentiment had fallen sharply and turned negative, indicating that analysts were bearish on the asset. This could undermine the near-term bullish momentum.
Nevertheless, short-term holders still gained, as evidenced by the positive increase in 30-day MVRV. But a drop in LINK prices could eat into holders’ profits, so it’s worth following BTC’s price action to gauge the status of investors’ holdings.
This post Chain link [LINK] dropped to a key support level – will it hold?
was published first on https://ambcrypto.com/chainlink-link-dropped-to-a-key-support-level-will-it-hold/