Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- LINK was strongly bullish on the 12-hour chart.
- There was increased short-term selling pressure.
Chainlink [LINK], like most altcoins, managed to recover losses made in mid-March during the U.S. banking crisis and overall market uncertainty.
It rose from $6, consolidated, then surged to $8.5 at the time of writing. Overall, LINK rallied over 40% since mid-March but had hit a key Q1 2023 price ceiling that could invite sellers unless Bitcoin [BTC] remains bullish.
Read Chainlink [LINK] Price Prediction 2023-24
Chainlink [LINK] network has seen more integration of its services across Ethereum [ETH], Arbitrium [ARB], and Polygon [MATIC].
⬡ Chainlink Adoption Update ⬡
There were 12 integrations of 4 #Chainlink services across 3 different chains: @Arbitrum, @Ethereum, and @0xPolygon.
Chainlink enables #Web3 innovation. pic.twitter.com/qEKxvu2JdK
— Chainlink (@chainlink) April 16, 2023
Can the new integrations prop up its native LINK’s value in the long term?
A likely new high or an impending pullback?
Source: LINK/USDT on TradingView
LINK’s first leg of recovery ended in a price consolidation between $6.86 – $7.64. The second leg of recovery broke above the parallel channel and hit the bullish target of $8.4, setting LINK to reclaim its Q1 2023 level. The level was also a key resistance level in September 2022.
As such, the uptrend momentum could slow down or enter a pullback, especially if BTC fails to reclaim the $30k level. If that is the case, LINK could retrace to $7.947 or the former channel’s upper boundary of $7.64. The dynamic 50-EMA and 200-MA support levels could check any further drop below $7.64.
A session close above $8.5 will be an invalidation. Such an upswing, especially if BTC surges beyond $30.4k, could tip LINK to target its pre-FTX levels of $9.0 – $9.5.
Meanwhile, RSI and the stochastic RSI have hit the overbought zone, reinforcing the bullish sentiment. But the overbought condition may tip bulls to take a break to cool off from the recent rally.
Nevertheless, the ADX (Average Directional Index) rose sharply – suggesting a stronger uptrend at press time.
Trading volumes and selling pressure increased
Source: Santiment
Is your portfolio green? Check LINK Profit Calculator
LINK’s trading volume dropped to its lowest around 9 April. After that, it improved despite a few fluctuations, as shown by the active addresses (yellow bars). In addition, the funding rates remained positive, reinforcing a good demand and bullish outlook from the derivatives market.
However, there was increasing short-term selling pressure despite LINK’s bullish momentum, as denoted by rising supply on exchanges.
Besides, the drop in supply outside of exchanges, at the time of writing, showed a decline in the accumulation as some investors lock in short-term gains.
