Recently, Linear Finance gained strong bullish momentum after wrecking the major resistance level of $0.0166 on 30 May. Lina Price was stuck in the consolidation zone ranging between $0.094 and $0.0166 since the beginning of April.
The price started to squeeze in the downward direction forming a descending which led to a bullish breakout. The cryptocurrency price retested the descending triangle and started its bullish journey. Linear finance has become one of the top gainers in the cryptocurrency market.
Lina’s price after the breakout received a strong rejection from the $0.026 level and the current candle has turned bearish. The price experienced a short-term pullback for retesting the previous zone before rising further.
If the Lina price can form support near the $0.0166 level, there is a higher probability for the price to retest the resistance level of the $0.02326 level. A break and close above the resistance can confirm that the cryptocurrency price might rise further higher.
Reason For Linear Finance Token Upsurge
Lina’s price has gained strong bullish momentum in the past few days. A likely reason would be an increase in the volume of trades in the ecosystem and the total locked value has increased above $13 Million. It was $5 Million at its lowest level in 2022.
The other reason might be the token gaining traction in social media. It has become one of the most mentioned projects on social media. A tweet regarding a whale doing pump and dump has surfaced on Twitter. The whale has been buying and selling from the Binance exchange. The whale has withdrawn 1.2 Billion tokens from exchanges via multiple addresses.
Will LINA Price Retrace?
Lina price trades above 20,50,100 and 200-Day EMAs indicating bullish momentum in the price. Chaikin money flow score is 0.11 indicating the presence of bullish strength in the market. CMF has declined from 0.20 suggesting that bears have also started to jump in the market to correct the bullish move.
RSI has reached the oversold zone and is currently at 77.16 which might be the reason for the current candle turning bearish and initiating a pullback. The long/short ratio is 0.98 with 49.63% longs and 50.37% shorts indicating a higher selling position in the last 24 hours.
Conclusion
The market structure and price action are bullish for Linear Finance but Lina’s price has started to turn bearish indicating a possibility of a pullback in the price. The technical parameters are still favoring bullish sentiment but the price has started to decline.
Traders should wait for the price to form support before looking for buying bids. If the price breaks that support then traders can think about entering a selling position.
Technical Levels
Major support: $0.094 and $0.0166
Major resistance: $0.0265 and $0.0320
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/01/lina-price-linearprediction-entering-correction-phase/