Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
LINK was heavily bullish on the 12-hour chart.
Short-term selling pressure increased.
Chain link [LINK]like most altcoins, managed to recoup losses incurred in mid-March amid the US banking crisis and general market uncertainty.
It rose from $6, consolidated, then surged to $8.5 at the time of writing. Overall, LINK was up more than 40% since mid-March, but had hit a major price cap in Q1 2023 that could invite sellers unless Bitcoin [BTC] remains bullish.
Read Chain link [LINK] Price prediction 2023-24
Chain link [LINK] network has seen more integration of its services over Ethereum [ETH], Arbitrium [ARB], And Polygon [MATIC].
⬡ Chainlink Adoption Update ⬡
There were 12 integrations out of 4 #Chain link services across 3 different chains: @Arbitrum, @EthereumAnd @0xPolygon.
Chainlink makes it possible #Web3 innovation. pic.twitter.com/qEKxvu2JdK
— Chainlink (@chainlink) April 16, 2023
Can the new integrations support the long-term value of the native LINK?
A likely new high or an imminent pullback?
Source: LINK/USDT on TradingView
LINK’s first recovery period ended in a price consolidation between $6.86 – $7.64. The second leg of the recovery broke above the parallel channel and reached the bullish target of USD 8.4, helping LINK regain its Q1 2023 level. The level was also an important resistance level in September 2022.
As such, the uptrend momentum could slow or enter a pullback, especially if BTC fails to regain the $30,000 level. If so, LINK could return to $7,947 or the former channel’s upper limit of $7.64. The dynamic 50-EMA and 200-MA support levels could check any further decline below $7.64.
A session that closes above $8.5 will be voided. Such an uptick, especially if BTC climbs above $30.4k, could lead LINK to target its pre-FTX levels of $9.0-$9.5.
Meanwhile, RSI and the stochastic RSI have reached the overbought zone, reinforcing bullish sentiment. But the overbought condition may prompt bulls to take a break to cool off from the recent rally.
Nevertheless, the ADX (Average Directional Index) rose sharply, indicating a stronger upward trend at the time of writing.
Trading volumes and selling pressure increased
Source: Sentiment
Is your wallet green? Account LINK Profit Calculator
LINK’s trading volume fell to its lowest level around April 9. After that, it improved despite some fluctuations, as evidenced by the active addresses (yellow bars). In addition, funding rates remained positive, reinforcing good demand and optimistic outlook from the derivatives market.
However, there was mounting short-term selling pressure despite LINK’s bullish momentum, as indicated by rising supply on exchanges.
In addition, the drop in off-exchange supply, at the time of writing, showed a decrease in accumulation as some investors lock in short-term gains.
This post Chain link [LINK] price cap reached Q1 2023- Will sellers prevail
was published first on https://ambcrypto.com/chainlink-link-hits-q1-2023-price-ceiling-will-sellers-prevail/
