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The selling pressure on Chainlink (LINK) found a price floor over the past 24 hours at the $12.7 support level. This produced a 5% bounce with a full bullish candle close on the daily timeframe.
Across the crypto market, Bitcoin (BTC) continued to trade around $64k, as several crypto tokens attempt to recover from the flash price crash over the weekend.
Should Buyers Bid From This Price Level?
Analyzing LINK’s price action on the four-hour timeframe highlighted the significant selling pressure, with bears breaking the bullish defense at the $16.5 support level.
This led to a 20% dip on LINK’s spot market price action. However, the buying strength at the $12.7 support initiated a bullish rebound with the potential for more upside.
The Relative Strength Index (RSI) rose out sharply from the oversold zone, although it still remained under the neutral 50 mark. This signaled that the selling pressure was still very much present.
Yet, capital inflows flipped positive with a 0.08 reading on the Chaikin Money Flow (CMF). This hinted that buyers expect this price area to be a good buy zone for LINK.
Emmanuel Musa
Traders looking for long opportunities can wait for a retest of the support level at $12.7 to confirm the strength of the buying floor. An entry from the support level would yield double-digit returns up to 25% with the next significant price level lying at the $16.5 resistance level.
Despite the long opportunity, buyers should anticipate profit-taking at the $16.5 resistance level with the possibility that selling pressure could still exist at that price zone.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
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