Published 1 hour ago
On September 2nd, the LINK chart displayed a higher price rejection candle at $7.3 resistance, hinting at the end of the ongoing relief rally. With a 0.8% drop today, the sellers bolster the possibility of price reversal. If the selling pressure persists, the coin holders may lose $6.3 support.
Key points from LINK analysis:
- The LINK chart shows high concentrated resistance at the $7.3 mark
- The OBV indicator slope rising indicates the buyers are making recovery attempts
- The intraday trading volume in the LINK coin is $335.8 Billion, showing a 14% gain.
Source- Tradingview
The LINK/USDT pair has been walking a lateral path between the $9.5 and $5.5 barrier for nearly four months. Furthermore, the last reversal from the overhead resistance aligned with the widespread sell-off in the crypto market tumbled the prices by 34.5%.
As a result, the downfall marked a new lower low at the local support of $6.25. The LINK price recovered 15% and hit the resistance zone at $7.3 over the past five days. However, high wick rejection at candle at the mentioned resistance indicates the sellers are wrestling with resuming the prevailing correction.
With sustained selling, the LINK price could plunge below the $6.26 support level. The bearish breakdown will intensify the selling pressure and could drop the price 12% lower to hit the May-June bottom support of $5.5.
On a contrary note, if buyers manage to push prices higher, they should breach the $8 resistance to establish a genuine recovery opportunity. Doing so, the LINK price could rechallenge the range top resistance of $9.5.
Technical Indicator
DMAs: the 20 and 100 day DMAs accumulates near the $7.3 barrier increasing the resistance power of the level. Moreover, the potential bearish crossover among these DMAs could encourage more sellers in the market.
Relative Strength index: Amid the recent relief rally, the daily-RSI slope shows sustainability below the neutral line, indicating the market sentiment is a bearish and bolstering continuation of price correction.
- Resistance levels- $7.3 and $8
- Support levels- $6.2 and $5.5
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/link-holders-exposed-10-drop-from-potential-price-reversal/