Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Chainlink’s preference for a lower market structure was bullish at the time of writing.
- The 2023 $8 supply zone had significant sell limit orders.
During the recent downturn in October Chain link [LINK] defended the psychological level of $7. During the early Asian trading session on October 16, LINK zoomed past $7.3 and changed the market structure on the 4-hour chart to a bullish bias.
Read Chain link [LINK] Price prediction 2023-24
A previous LINK award analysis by AMBCrypto evaluated the possibility of sellers expanding gains to the psychological level of $7. The idea was confirmed when buyers regrouped at this level in recent days.
Can LINK extend recovery?
Source: LINK/USDT on TradingView
LINK’s huge recovery in September faltered in the supply zone of $8.0 – $8.8 (red) in 2023. The subsequent pullback tapered off at the psychological level of $7. Interestingly, the level coincided with the 50% Fib level and the H12 bullish order (OB).
The Fib tool was based on the recent high of $8.2 on September 30 and the previous low of $5.7 on September 11. Based on the tool, the immediate hurdles were 78.6% Fib ($7.73) and the 2023 supply zone $8.0 – $8.8 (red).
At the time of writing, the price action extended beyond the recent lower high of $7.43. The rebound turned the H4 market structure into a bullish bias. So, sellers could wait to re-enter the market at the overhead resistance levels – 78.6% Fib level and the 2023 supply area.
The 50% Fib level will be a key buying interest for bulls and a short target for sellers as the price falters on overhead hurdles.
Meanwhile, the RSI and OBV were positive at the time of writing. It indicated that buying pressure rose alongside improved demand in the spot market. However, capital inflows remained subdued, as evidenced by the negative CMF in the first half of October.
Important buy and sell limit orders at $7 and $8
Source: Mobchart
According to Mobchart, major buy and sell limit orders were placed in the $7 zone and the supply zone. On the Binance Exchange, sell limit orders of 74.43k LINK were placed for $8 at the time of writing.
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Likewise, there were significant buy limit orders between $7.0 and $7.1, which coincided with the highlighted white area on the price charts (H12 bullish zone).
Ergo, LINK’s recovery could target the 2023 supply zone, but a hiccup in the area could force the bulls to regroup at the psychological $7 level.