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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Chainlink has a bullish view on the higher time frame charts.
- The consolidation of the past two weeks has not yet shown a breakout in either direction.
Chain link [LINK] announced the mainnet launch of the v0.2 upgrade on November 28. When AMBCrypto reported on these developments, we noted that there had been a steady decline in Open Interest.
While this could mean bearish sentiment on the lower time frames, overall LINK was in a healthy position on the price chart.
Furthermore, the range building over the past two weeks would likely have a strong influence on Chainlink’s price action in the coming days.
In combination with Bitcoin [BTC] inability to convincingly reach the $38,000 mark, questions about LINK’s bearish reversal remain relevant.
The $15 region briefly turned around in support
Source: LINK/USDT on TradingView
On November 11, LINK climbed above $15 and switched to a support level. To the north, resistance on the higher time frame was at $18.32, with $15 also a significant level on the one-week chart.
Still, LINK fell quickly after rising to $13.4.
The 12-hour chart above shows the range (dashed cyan) more clearly. It extended from $13.35 to $15.4. On November 26, LINK bulls faced rejection from the range highs.
The RSI noted that momentum was neutral at a value of 51 and neither buyers nor sellers were dominant in this time frame.
On-Balance Volume showed no trend in November. Meanwhile, the Chaikin Money Flow (CMF) has been steadily declining for most of the past three weeks. This meant that the flow of capital was diverted from the market.
The heatmap of liquidation levels showed which direction LINK was likely to go next
Source: Hyblok
Traders can view range formations as clear territories where a good risk-reward buying or selling opportunity may arise. However, at the time of writing, LINK was closer to the mid-range.
AMBCrypto looked at where it would go using data on Hyblock liquidation levels, which showed that the $15.6 region contained a large number of estimated liquidations.
Read Chainlink’s [LINK] Price prediction 2023-24
Since the price is attracted to liquidity, a LINK sweep of the area just above the highs in the $15.6-$15.9 range was very likely. If this happens, LINK will likely build bullish expectations.
A turn south could trap the early bulls, leading to even more liquidity for the market in the south. Therefore, a move towards $14.37 (mid range) and $13.35 (low range) would be the next move.
