Why Chainlink price could lose momentum at $8.00
|- Chainlink price displays bullish strength with a move from support at $6.60 to highs of $8.00.
- LINK risks giving up the accrued gains as investors consider booking early profits.
- Sidelined investors are looking forward to new entries if Chainlink price dips to $7.00.
Chainlink price is among the few crypto assets in the green on Sunday. The smart contacts’ price feed oracle token defied the bear market this week to post 23.7% gains. As discussed earlier in the week, the V-shaped pattern matured at LINK brushed shoulders with $8.00. Chainlink price must hold above this level to secure the gains made, allowing buyers to plan for the next move to $14.00.
Chainlink price is at a critical juncture
Chainlink price is trading at $7.99 while facing extremely oversold conditions. The Stochastic RSI on its eight-hour chart maxed within a whisker of touching the 100.00 mark. It means that LINK price could be trading above its real market value, and a pullback is likely before the uptrend continues.
Profit takers at $8.00 would also contribute to the building overhead pressure, thus increasing the chances of a bearish correction. The OBV (On Balance Volume) indicators shows that Chainlink price lack momentum to carry on with the uptrend.
LINK/USD eight-hour chart
It might not be an awful idea if Chainlink price retreated to $7.00. The IOMAP on-chain metric by IntoTheBlock reveals that the region between $6.75 and $7.34 is a strong buyer congestion zone. Approximately 28,200 addresses previously purchased around 338.7 million LINK tokens in the area. Investors within this range are unlikely to bow to selling pressure. If anything, Chainlink price would collect more liquidity for a sharp rise to $14.00.
Chainlink IOMAP model
Weaker IOMAP cohorts to the upside affirm Chainlink price’s bullish outlook. In other words, the path with the least resistance is upward for now, but LINK price must first build momentum to avoid a pump and dump situation.
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