The probability of Chainlink reversing its trend and what it means for LINK’s sellers

Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

A telecom company based in Bahrain, Bahrain, is said to have launched its Chainlink node. Using this node, the company can offer smart contracts and support Chainlink Price Feeds.

This is the first time that a telecom company in the MENA region has launched a Chainlink node. However, in the charts, it appeared that the price of the token would move lower in the coming days.

LINK-1 hour chart

Source: LINK/USDT on TradingView

The long-term trend behind LINK has been bearish since November. Even since mid-January, the currency has noticed strong moves south, followed by a retracement to the north. This may have happened again in recent weeks when LINK capped from $11.4 to $15.8.

In terms of the short-term outlook, the market structure for LINK appeared bearish. In addition, the $13.6 level represented the lows of a range Chainlink has been trading in since May of last year.

Therefore, $13.6 is a key support level that has once again been lost to bearish pressures. The $13 and $13.6 areas have been in demand for the past two weeks. Since LINK traded below these areas, a retest of this delivery area would likely be rejected and see downward movement.

rode

Source: LINK/USDT on TradingView

The RSI has been below zero for most of March. For the past few days, there has been a bullish divergence between the RSI and the price on the hourly chart. However, the predominant trend has been bearish. Therefore, any price increase would likely be a sales opportunity.

The OBV has also been in a clear downtrend for the past week to highlight the strong bearish presence in LINK markets.

Conclusion

The market structure has been bearish and longer time frames have been established that upward moves for LINK are likely retracements. Once LINK dropped below $14.4, the short term bias also flipped to bearish and it remains bearish.

The bullish divergence that has developed over the past few days may cause LINK to bounce towards $13-$13-6. Selling pressure behind the coin is likely to see LINK rejected at these resistances and head south again.

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