Can Chainlink bulls break the $6 barrier soon

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• Even though Chainlink has rallied, an uptrend might not yet be established.
• The gains of the past week were encouraging, but are they enough to shift the tides in bullish favor?

Chainlink [LINK] has a bullish outlook on the short-term price charts. Heading into the weekend, LINK could stagnate at the $6 level as it is both a technical and psychological resistance. However, investors looking for long-term buying opportunities might need to be cautious.

How much are 1, 10, or 100 LINK worth today?

Throughout 2023, the $6.3-$6.35 area has been critically important. It served as support throughout the year but was recently flipped to resistance. The $5.92-$6.1 region was also important. If Chainlink can flip these levels to support, the chances of a rally will brighten considerably.

Chainlink bulls showed intent in the market as a test of $6 looked increasingly likely

Source: LINK/USDT on TradingView

The H4 market structure of LINK was firmly bullish. The price posted a lower high at $5.28 on 11 June, but instead of following the previous downtrend, the LINK prices ascended slowly thereafter. Not only did LINK retrace to the 50% level at $5.42, but it also managed to break out past that resistance over the past three days.

The move to $5.42 was followed by a drop to $4.99 on 19 June, which appeared to shift the market structure to bearish. Yet this turned out to be a deviation as the price shot higher over the past few days.

While the RSI reflected the strong gains, the OBV was not similarly enthusiastic. It climbed to new highs after a lack of activity from 12 to 19 June but remained beneath local resistance. This suggested demand might not be enough yet to initiate a rally. To the north, the H4 bearish order block at $6.26 and $6.6 can reject bullish advances.

The Open Interest showed hefty short-term bullish intent

Source: Coinalyze

The price action of Chainlink showed that a move to $6 was possible and even likely. But the evidence from Coinalyze showed otherwise.

Realistic or not, here’s LINK’s market cap in BTC terms

Even though the Open Interest was climbing alongside prices, the spot CVD can make bulls reconsider.

The trend of the OI and price showed strong bullish intent. Speculators were willing to bid on the asset and capital inflow into the LINK market was in progress. Yet, the spot CVD was in a downtrend that accelerated after 19 June.