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Chainlink approached an important demand zone for $ 15.5. The profitable activity has not stopped, but the statistics showed that this threat should be reduced. Will this be enough to stop the Retracement of $ 19.5?
Chain link [LINK] The prices have fallen by 17.2% since July 28. This retracement came next to a Bitcoin [BTC] Price decrease of 4.9% from $ 119.8k to $ 113.6k.
On-chain and technical signals, however, suggest that the worst of the retracement might be over is but a bounce is not yet guaranteed.
A distribution phase has been going on in the last ten days
The data from Santiment showed that the wave of profitable on link may have ended.
The sleeping circulation saw a considerable peak on August 1. The signaled increased token movement on the chain and is generally a result of increased sales activity.
In addition to a price decrease of 5.08%, it came for the day.
In the meantime, the average currency (90 days)-which had been higher, has fallen steadily in the past two weeks. This drop is in line with the image of wider network distribution.
Another important statistics, the MVRV ratio, also fell with the chain link price, which showed that holders were less profit than before.
The token movements that emphasized earlier, pointed to determining a profit in recent weeks. The threat of profitable activity to the price can end when the MVRV is zero.
Can Bulls reclaim control for $ 15.5?
Source: Link/USDT on TradingView
The strongest argument for a chain link trend was the price action of the past month.
Admittedly, the market structure was strong bearish and the RSI is on the press among neutral 50 cases. The OBV was backwards and the evidence showed that Bears were dominant.
If Chainlink had a bullish response, this would probably come from the demand zone of $ 15.5. It had been an important zone in the second week of July, where the prices were briefly consolidated before they race higher.
It also has confluence of the 50-day advancing average. The volume profile of the fixed range from the beginning of July showed that the value of the value was low (dotted blue) $ 15.7.
Traders can also keep an eye on Bitcoin to give instructions for a reversal of a link trend.