It was noted in a previous study of LINK by AMBCrypto on October 8 that there was a chance the current dip was only a little correction prior to the positive upswing continuing. The demand in the futures market was the cause of this.
These levels are where LINK’s sellers might aim for further shorting chances.
- As the stock dropped below yet another support level, sellers prolonged the retreat.
- A decline in Open Interest suggested that pessimistic sentiment was intensifying.
- Chainlink [LINK] sellers prolonged the price pullback, causing purchasers to lose additional ground
This analysis hasn’t been confirmed, yet, as LINK hasn’t traded below the 38.2% Fib level.
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Shorting Opportunities for LINK: Key Levels to Watch for Sellers,Shorting Opportunities for LINK: Key Levels to Watch for Sellers
Can sellers become short-term bearish on LINK?
Due to its tremendous surge, LINK ended September at a high point, hitting the $8.2 price range. But October also brought with it bearish candles. Bears have taken control of two significant price levels during the retreat from the $8 price zone.
Due to the current selling pressure on LINK, the 23.6% Fib ($7.69) and the $38.2% Fib ($7.31) have dropped. A week passed during which buyers mounted a short defence after the rapid pullback took LINK below the 23.6% Fib, before sellers turned the 38.2% Fib become resistance as well.
Since the price is now above the 50% Fib ($7.01), a sell-side breach of the level might turn the upper timeframes of LINK negative. The 3.5% profit margin that sellers might aim for from the present price level to the 50% Fib is thus possible.
Meanwhile, the selling pressure was indicated by the Relative Strength Index (RSI), which was trending lower and below the neutral 50. The On Balance Volume (OBV) persisted in its oscillations as it attempted to establish a long-term downward trend.
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Open Interest fell as the price did.
The derivatives market was obviously showing signs of negative momentum. Coinalyze reports that during the previous day, LINK’s Open Interest (OI) decreased by 1.86%. Price and this fall suggested a strong negative bias.
In a same vein, there was no demand for LINK as the spot Cumulative Volume Delta (CVD) trended lower. As a result, sellers may increase their leverage and become LINK bearish in the near run.
Shorting Opportunities for LINK: Key Levels to Watch for Sellers,Shorting Opportunities for LINK: Key Levels to Watch for Sellers,Shorting Opportunities for LINK: Key Levels to Watch for Sellers