Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
LINK hit a roadblock, a bearish order block near $7.
Open interest and financing rates wavered slightly.
Chain link [LINK] was forced to surrender the $7 psychological level after short sellers sought entry. In particular, the $7 level corresponded to a crucial roadblock on the daily chart, causing the recent price pump to cool down to the level.
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In the meantime, Bitcoin [BTC] extended its range-bound formation from $30k-$31.5k for the third week in a row. The king coin was trading near its lows at the time of writing, underlining near-term selling pressure over the weekend (July 15/16).
Can bulls clear the roadblock?
Source: LINK/USDT on TradingView
LINK faced $7 price rejection and dropped to $6.84 at the time of writing. When zoomed into the higher time frame, particularly D1, the $7 corresponded to a bearish order block of $6.89 – $7.28 (red) formed on May 5, 2023.
Back to the H4 chart, Chainlink has been making higher highs since mid-June – an uptrend that wiped out all of the May/June losses. But the recovery hit a roadblock that forced the price to fall to the FVG (fair value gap) of $6.68 – $6.87 (white).
A break below the FVG zone will flip the H4 structure into a bearish bias. Such a move could lead short sellers to extend their profit to $6.32 or $6.07. As such, $6.07 – $6.32 could be an interesting price zone for short-term bulls looking to re-enter.
Conversely, a rise above the bearish OB could be feasible if BTC regains the USD 31,000 zone. Such an uptick could turn LINK bulls’ focus to $7.62 and $8.
The RSI and OBV eased, with the RSI retreating near the neutral level. It indicates buying pressure and demand fell as near-term selling pressure increased over the weekend.
Open Interest rates and financing rates wavered
Source: Coinalyse
How many Worth 1.10.100 LINKs today?
On Coinalyze’s 1-hour chart, LINK’s funding rates briefly turned negative on July 15, before improving slightly at the time of writing. Similarly, Open Interest (OI) rates fell from >$120 million at the peak of the price pump on July 14 to nearly $110 million.
All in all, it shows hesitant demand, which could further impact the bulls if the trend continues in the coming hours/days. In that case, the $6.07 – $6.32 zone could be interesting for short term bulls.
This post Chainlink reverses all June losses, but…
was published first on https://ambcrypto.com/chainlink-reverses-all-june-losses-but/
