Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bullish momentum stalled after pullback at $11.5 resistance level.
- However, buyers were still active, as evidenced by on-chart metrics and funding rate.
Chainlink [LINK] maintained its strong bullish uptrend, despite the pullback at the $11.5 resistance level. This followed the altcoin’s staggering 53% rise over the past week, which saw it break past a year-long resistance at the $10 price level.
Read Chainlink’s [LINK] Price Prediction 2023-24
AMBCrypto’s earlier analysis on 26 October highlighted the immense bull run. Still, it warned buyers to be wary of FOMO (Fear of Missing Out) because of the resistance level between $11 – $12 on the higher timeframes.
While a pullback might have happened at the resistance level mentioned above, the price action and on-chart indicators signaled a continuation of the bullish uptrend.
LINK buyers not stopping even after massive gains
The strong buying pressure was evident on the Relative Strength Index (RSI). The indicator climbed into the overbought zone on 21 October and has remained there. This highlighted the strong buying power behind LINK’s bullish run.
Similarly, the Chaikin Money Flow (CMF) stayed positive with a reading of +0.11. This hinted at sustained capital inflows for LINK, i.e., investors were willing to bid higher on LINK in the spot market.
With a lot of buyers still present in the market, the pullback at $11.5 could serve as a minor correction before a continuation of the uptrend.
However, if sellers extend the retracement to the $10 support level, then buyers will need to defend price at the support before resuming the upward movement.
Buyers need to be careful of short-term demand dip
How much are 1,10,100 LINKs worth today?
Data from Coinalyze showed that the funding rates remained positive. This showed that there were still more speculators willing to buy LINK than sell in the futures market.
However, the spot CVD revealed a decline in demand on the four-hour timeframe. This could be a result of short-term holders taking profit. Therefore, long-term holders can wait for a drop to the $10 support, as this would present a better long opportunity for new buyers.