Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The price bounced off the $5 support to ease selling pressure.
- Falling spot CVD indicated a lack of demand.
Chain links [LINK] extended bearish swing saw it sink to a two-year low of $5. A recent price report highlighted the altcoin’s vulnerability to more losses due to the intense selling pressure. This was evident from the price drop of 20.6% on June 10, a new low for LINK.
Read Chainlinks [LINK] Price Forecast 2023-24
With the $5 support holding tight for the past seven days and Bitcoin [BTC] rising to $26.5k, buyers could try to reverse some of the recent losses for LINK.
Bearish swing temporarily stopped at $5 support level
Source: LINK/USDT in trade view
LINK hit an all-time high of $8.77 on April 18. Nevertheless, that price zone has been a strong area for bears, as caused by the massive dip that occurred when the price last approached that zone in November 2022.
This time was no different as the price rejection at the $8.77 resistance sent LINK into a massive downward spiral, crashing through the $8.18 and $7.26 support levels. A bullish reaction was expected as LINK descended to its March low of $5.94. Still, the bears prevailed to crash the price to $5.
Bulls showed signs of life with gains of 3.9% in the last 24 hours. However, it will take much more to break the bearish structure with major hurdles on the bearish trendline and confluence of resistance ($5.50 – $6).
Indicators on the chart flashed promising signals over the 12-hour time frame. The MACD posted a bullish crossover along with green bars above the zero mark. The CMF remained above zero at +0.07 as the RSI crept out of the oversold zone and stood at 40 at press time.
These indicated that bulls were experiencing a sell-off break in the short/medium term.
Realistic or not, here is LINK’s market cap in terms of BTC
Market speculators are unimpressed by recent gains
Source: Coin analysis
A look at LINK’s on-chain stats highlighted the lack of interest in a bullish rally. The spot CVD continued in a steady decline. This indicated a lack of demand for LINK. Conversely, the Funding Rate has been negative since June 16, with investors hesitant to take any action.
This underlined the strong bearish sentiment still prevailing, which could limit a recovery for LINK in the medium/long term.
