Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- LINK’s recovery has eased off its March low
- Buying volumes and outstanding interest declined
Chain link [LINK] chalked up a lateral structure ECB (EU Central Bank) Forum on Central Banking scheduled for June 28, 2023. US Fed Chairman Jerome Powell will also attend the meeting, and investors are especially watching his speech.
Read Chain link [LINK] Price prediction 2023-24
The direction of the market after the meeting may depend on whether major speeches take an aggressive or a moderate stance. In the meantime, BTC fluctuated above $30k as LINK ranged between $5.9 – $6.3.
Will LINK Lose March Low?
Source: LINK/USDT on TradingView
LINK’s structure was bullish on the daily time frame after climbing above the March low of $5,917. But that is just a bullish intent and not an outright uptrend. In addition, a bearish order block (OB) exists on the daily chart at $6.0 – $6.3 (red). Thus, bulls could only claim leverage if they moved above $6.3.
The Relative Strength Index (RSI) had broken out of the overbought zone and dropped below 50, highlighting a sharp drop in buying pressure. Similarly, On-Balance Volume (OBV) moved sideways, indicating that demand has been stagnant for the past few days.
A negative price reaction to the confluence of the March low and bearish OB could drag LINK to the lower high and previous high of $5.4. The next immediate level of support is at $5.0.
Conversely, a move above $6.3 will make $6.66 and $7.7 the next target for near-term bulls. But such an uptick will depend on BTC rising above USD 31.4k.
Buying volumes eased
Source: Coinalyse
Despite rising Open Interest (OI) rates between June 20 and 24, the Cumulative Volume Delta (CVD) spot has eased significantly. It shows that rising demand (rise in OI) in the futures market did not create huge buying pressure on the spot side.
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But both stats have been falling over the past few hours at the time of writing. It paints a near-term bearish outlook for LINK. Bulls can wait for a pullback retest at $5.9 or $5.4 to go long, provided BTC remains bullish.
