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- LINK fell below a two-year low of $5.30
- LINK’s CVD witnessed a sluggish rise, but open rates fell
Regardless of the Fed’s decision, a strong crypto market recovery could be elusive due to the Binance lawsuit. So, Chain link [LINK]which had fallen below the 2021/2022 low of $5,300 could become an uphill task to reverse the recent losses.
Read Chain link [LINK] Price prediction 2023-24
At the time of writing, the price of LINK was $5.4, up from its two-year low after the key whale movesbut major roadblocks may hedge his advantage.
What’s next for LINK?
Source: LINK/USDT on TradingView
After consolidating between $6.24 and $6.80 for most of May, LINK broke below the range, breaking 2021 lows of $5.30. The decline narrowed to $4,761 before attempting a recovery, but the mild rally is moving into a key bearish zone.
A Fibonacci retracement tool was placed between the late April high and the recent low. Based on the tool, the pocket between 23.6% and 38.2% Fib levels is a key area of ​​resistance as it equates to a FVG (fair value gap) of $5.3 – $5.93 (white).
Therefore, a negative price reaction in the above zone could cause LINK to devalue to $5.4 or $4.76. Any move below the 2021 lows could lead to $4.1.
Conversely, a session above the 50% Fib level ($6.13) could provide bulls with a slight advantage. However, the H12 market structure will remain bearish unless LINK moves above the 78.6% Fib level ($6,915).
As of June 10, there was significant buying pressure as the Relative Strength Index (RSI) climbed above the oversold zone. Similarly, the Chaikin Money Flow (CMF) crossed zero indicating an increase in capital inflows for LINK.
CVD rose, but OI fell
Source: Coinalyse
The weak bullish momentum on the price charts was confirmed by the slowly rising Cumulative Volume Delta (CVD). It shows that buying volumes have increased slightly from June 10.
How many Worth 1.10.100 LINKs today?
But open interest rates (OI) fell from >$110 million to less than $80 million over the same period. This underscores bearish sentiment in the futures market and could delay a strong recovery of LINK if it fails to cross $100 million.