Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The bullish momentum came to a halt after a pullback at the $11.5 resistance level.
- However, buyers were still active, as evidenced by the statistics on the card and the financing rate.
Chain link [LINK] maintained its strong bullish uptrend despite the pullback at the $11.5 resistance level. This followed the altcoin’s staggering 53% surge over the past week, which saw the altcoin break through a year-long resistance at the $10 price level.
Read the one from Chainlink [LINK] Price forecast 2023-24
AMBCrypto’s previous analysis on October 26 highlighted the immense bull run. Still, it warned buyers to be wary of FOMO (Fear of Missing Out) due to the resistance level between $11 and $12 at the higher futures.
While there might have been a pullback at the resistance level mentioned above, the price action and indicators on the chart indicated a continuation of the bullish uptrend.
LINK buyers don’t stop even after huge wins
Source: LINK/USDT on Trading View
The strong buying pressure was clearly visible on the Relative Strength Index (RSI). The indicator climbed into overbought territory on October 21 and has remained there. This highlighted the strong purchasing power behind LINK’s bullish run.
Similarly, Chaikin Money Flow (CMF) remained positive at +0.11. This indicated continued capital inflows for LINK, i.e. investors were willing to bid higher for LINK in the spot market.
With plenty of buyers still in the market, the $11.5 pullback could serve as a small correction before the uptrend continues.
However, if sellers extend the retracement towards the $10 support level, buyers will have to defend the price against the support before resuming the upward move.
Buyers should beware of a short-term dip in demand
Source: Coinalyse
How much are 1,10,100 LINKs worth today?
Dates of Coinalyse showed that financing rates remained positive. This showed that there were still more speculators willing to buy LINK than sell on the futures market.
However, the spot CVD revealed a drop in demand within a four-hour window. This could be a result of short-term holders taking profits. Therefore, long-term holders may wait for a decline towards the $10 support as this would provide better opportunities for new buyers in the long run.