Chainlink reverses all June losses, but…

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

• LINK hit a roadblock, a bearish order block near $7.
• Open Interest and funding rates wavered slightly.

Chainlink [LINK] was forced to surrender the $7 psychological level after short-sellers sought entry. Notably, the $7 aligned with a crucial roadblock on the daily chart, which led the recent price pump to cool off at the level. 

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In the meantime, Bitcoin [BTC] extended its range-bound formation of $30k- $31.5k for the third week in a row. The king coin traded near the range-lows at the time of writing, underscoring the short-term selling pressure witnessed over the weekend (15/16 July). 

Can bulls clear the roadblock?

Source: LINK/USDT on TradingView

LINK faced price rejection at $7 and eased to $6.84 at the time of writing. When zoomed on the higher timeframe, specifically D1, the $7 aligned with a bearish order block of $6.89 – $7.28 (red) formed on 5 May 2023. 

Back to the H4 chart, Chainlink has been making higher highs since mid-June – an uptrend that reversed all May/June losses. But the recovery hit a roadblock forcing the price to ease to the FVG (fair value gap) of $6.68 – $6.87 (white). 

A breach below the FVG zone will flip the H4 structure to a bearish bias. Such a move could set short-sellers to extend gains to $6.32 or $6.07. As such, the $6.07 – $6.32 could be a price zone of interest for near-term bulls seeking re-entry. 

Conversely, a mount above the bearish OB could be feasible if BTC reclaims the $31k zone again. Such an upswing could set LINK bulls’ focus on $7.62 and $8. 

The RSI and OBV eased, with the RSI retreating near the neutral level. It denotes buying pressure, and demand declined as short-term sell pressure intensified over the weekend. 

Open Interest rates and funding rates wavered

Source: Coinalyze

How much are 1,10,100 LINKs worth today? 

On Coinalyze’s 1-hour chart, LINK’s funding rates briefly turned negative on 15 July before improving slightly at the time of writing. Similarly, the Open Interest (OI) rates dropped from >$120 million at the peak of the price pump on 14 July to nearly $110 million. 

Collectively, it shows wavering demand, which could affect bulls further if the trend extends for the next few hours/days. In that case, the $6.07 – $6.32 zone could be of interest for near-term bulls.