LINK Recovery Stalls at Roadblock: Will Bulls Regain Control?

LINK Recovery Stalls at Roadblock: Will Bulls Regain Control?

• Chainlink’s [LINK] recovery in late May stalled at $6.635, just above its mid-range.
• Sellers took control of the market and extended gains close to the range low of $6.2.
• Bulls had little leverage due to a bearish order block (OB) of $6.51 – $6.64 (red).

Will Chainlink’s Recovery Halt?

The recent recovery of Chainlink’s LINK token has stalled near its mid-range level, aligning with a bearish order block that could set it to head southwards again. Unless Bitcoin surges to $28k, LINK bulls could face difficulty bypassing the bearish OB and may be unable to reach the range high of $6.8 in the meantime.

Chainlink’s Price Rejection

Since 8 May, LINK has been trading within a range between extremes at $6.2 and $6.8, with its current price hovering around the mid-range level of $6.53 after it was rejected at the top end of this range on 5 June 2023 due to Bitcoin’s price rejection at $28k which saw it reclaiming back only up to 27k at press time. This has caused sellers taking control over the market extending gains close to the bottom end of this range ($6.2). The bearish order block (OB) formed from 6/25 – 6/4 (white) and 6/51 – 6/64 (red) further limits LINK’s chances for an upward movement as it stands now unless BTC experiences significant surge soon enough.

Bulls With Little Leverage

At present, long positions dominate exchanges at 52% which implies bullish outlook on 4-hour timeframe in futures market; however seller pressure cannot be overruled yet given roadblock posed by OB near mid-range level and declining overall demand since late April as shown by On Balance Volume indicator making lower lows during same period; thus buyers have little leverage as things stand now without significant BTC surge boosting their momentum towards breaking through OB barrier and moving up towards top end of this current established trading range ($6.8).

Conclusion: Keep An Eye On BTC

Traders should keep track of Bitcoin before making any moves with LINK given that any impulse move above 6/35 mark invalidates bearish thesis while even more so if BTC retests 28k or 27/8K mark which could tip Link towards rallying up towards upper extreme ($6/8) breaking through previously mentioned order blocks along way; however without such surge from king coin all other efforts might prove futile as things stand now currently for LINK token traders who are eyeing short term profits in foreseeable future regarding this cryptocurrencys‘ behaviour on open markets

Disclaimer

The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion