These are the areas that will put heavy selling pressure on Chainlink

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

Chainlink bulls were hopeful in early February that $15.3 was defended and that a longer-term rally may have begun. However, their hopes were dashed when the $18 resistance zone simply failed to move. Broader market sentiment was also not particularly optimistic. Rather, it was fearful in the longer-term. Like many other altcoins, Chainlink was also in a downtrend.

LINK-1D

Source: LINK/USDT on TradingView

At the time of writing, LINK was trading just below the range lows (blue) at $13.5. In the past, this was an area where investors sold the clothes on their backs to go “all in” on LINK. In mid-July, a visit to this area was followed by a strong move back to the range highs.

However, since November, the USD 29 and USD 18 (red box) areas have served as areas of resistance. In the event that demand can push prices back above $14, these are the areas that will put heavy selling pressure on the asset.

On the downside, a move down in the coming days would likely turn the $13.5 area into a supply zone.

rode

Source: LINK/USDT on TradingView

The RSI made a series of higher lows even as LINK made lower lows – a bullish divergence. This divergence may push the price back above $13.5. However, the RSI was still below the zero line, momentum was not yet in favor of the bulls. It was a similar story on the AO – momentum has been bearish but has eased slightly over the past month.

The OBV has also hit higher lows over the past nine months, meaning buying volume was present even over longer terms. But the OBV has fallen over the past two months — and where the OBV goes next could set the tone for weeks to come. The CMF was at -0.04, in neutral territory, but close to showing capital flow out of the market.

Conclusion

The bulls’ inability to defend the lows of the range was a sign established by the bears – they have once again come to town with vigor. The indicators showed that bearish momentum could be declining, but this indication was weak and another selloff could provide commentary. In the south, $11.96 and $9.8 could provide support. A daily session closing above $13.6 could see another bounce, but the trend remains bearish.

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