Quite unpleasant was the last trading week in the Chainlink market (LINK). Sellers were able to destroy all the efforts of buyers to continue the growth, which they have been making since early February.
At high volumes, the LINK price again tested the range of $26.7-26.8, before which it had a long stop in January.
Sellers lose Initiative and Trend Line
On 22 February, sellers managed to break the trend line, which buyers firmly have kept since December 2020. The weakness of buyers, which we wrote about in the previous article realized itself in the corrective movement of the LINK price.
Buyers withstood the first blow and are currently organizing a counterattack:
The chart shows that February 23 could be a fatal day for the LINK market. On high volumes, sellers attacked the range of $26.7-26.8.
However, buyers managed to close the daily candle with dignity, showing their interest in this range. Therefore, the local initiative of sellers has faded. This fact is confirmed by the daily candle from 28 February. Sellers were unable to update the local low.
In addition, this attempt was repeated at low volumes, which indicates a significant decrease of sellers’ number in this price range. Thus, the main local scenario at the moment is a price rollback to the range of $32-32.6.
Control of $26.7-26.8 Gives Buyers a chance to Test $32-32.6
Local support for this scenario is around $27.5. As you see in the 4-hour chart, sellers needed extra effort in terms of volumes to take control of this local level. A slight LINK price correction to this mark will confirm the intentions of buyers to continue growing to $32-32.6.
It is in this range that the main question will be resolved – whether sellers will be able to continue the downward trend with the first target of $16.5-17.5.
LINK/BTC Continues the Correction Journey
If you look at the LINKBTC chart globally, you see that the price has gone beyond the growth trend. And now it is moving in the correction channel.
As long as the LINKBTC price moves within this black channel, we will not see active upward movements in the LINKUSDT market. On the contrary, BTC price correction continuation can significantly accelerate the LINK fall.
Therefore, at the moment the LINK market is at a crossroads. It takes a little patience and a test of $32-32.6 to choose the right way.