Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- LINK hit a familiar hurdle at the $8.1 resistance, leading to an 11% decline.
- Buyers were still active, with a dominant share of the Exchange Long/Short Ratio.
The price high of $8.1 once again stood in the way of Chainlink [LINK] bulls, with a price retracement taking the altco past the $7.6 support level.
Read Chainlink’s [LINK] Price forecast 2023-24
Previously, LINK had staged a dizzying bullish rally in September, posting gains of more than 40% between September 12 and September 30.
However, October started off bearish with an 11% decline, preventing bulls from posting a new yearly high.
Bulls can’t clear the big sales hurdle
Source: LINK/USDT on Trading View
A look south revealed the strength of the bears in the $8.1 price zone. The strong bullish run in July came to an end at the price level, ushering in massive selling pressure in the second quarter, sending LINK down to the $6 price zone.
The second attempt to reverse the $8.1 resistance level suffered the same fate, with sellers unwilling to give up their bearish stronghold.
The indicators on the chart showed that the inability of bulls to reverse the level may have been due to profit taking by LINK traders. The CMF (Chaikin Money Flow) highlighted the sudden outflow of capital and fell from +0.16 to -0.06.
The RSI (Relative Strength Index) also fell out of the overbought zone and hovered above the neutral 50. This reflected the loss of buying pressure.
A resumption of the bullish rally would depend on buyers regaining the $7.6 support level. Otherwise, sellers could push the price towards the next support at $7.
Buyers are still in the game
Source: Coinglass
How much are 1,10,100 LINKs worth today?
The stock market long/short facts showed that buyers were still very active at the time of going to press. Longs dominated the open contracts ratio with a 51.23% share, amounting to $185.19 million.
This indicated that the ongoing retracement could be a minor correction before the continuation of the bullish uptrend.