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For the past two weeks, Chainlink (LINK) has oscillated between the $6.3 and $6.8 marks. The overall trajectory on the daily chart was pointing downwards. However, smaller timeframes indicated that LINK might display a slight positive response from $6.3.
Chainlink Future
One of the metrics from on-chain measurements was in favor of investors. Yet, it might not be sufficient to recover from the selling pressure seen since April 19.
On May 18, the resistance at $6.82 was tested, but bulls didn’t find what they expected in this region, leading to a price retraction. Within 24 hours, LINK’s bullish outlook might have been damaged by a drop below the low of $6.55 to $6.43.
From May 19 to May 22, LINK continued to operate under a bearish structure. Tuesday saw a glimmer of hope for Chainlink buyers as Bitcoin rose to $27,400, pushing the prices back up to $6.6. However, this turned out to be a bull trap.
Both BTC and LINK prices began to decline again. The recent fall to $6.3 for LINK indicated another testing of the buy order block from May 12, highlighted in teal. This OB had been tested two days ago, marking LINK’s jump to $6.6.
Repeated tests of the order block tend to weaken buyers, and Chainlink might see a weaker bounce before surrendering to sellers. On the other hand, OBV remained stuck in a range, and traders might wait for OBV to drop below support before seeking short entries.
The Latest on Chainlink According to Santiment
According to Santiment, the 30-day MVRV ratio being in the negative territory showed that short-term investors were at a loss. Given Chainlink’s trend over the past month, this could have been a reasonable situation. The average age of the cryptocurrency presented a more surprising possibility.
The metric had been on an upward trend since mid-March and only experienced a significant drop in recent days. The resulting inference, despite the absence of a clear trend on higher timeframes, was that Chainlink buyers were consistently placing bids for the token. This also indicated that the bullish trend could reverse upon a retest of the $6 to $6.2 support, just as it did in March.
