Chainlink price could be ready for a ricochet to $8.06 as LINK buy-orders exceed market supply

• Chainlink price engaged a load-shedding gear on May 1 after losing the critical support at $6.96.
• However, on-chain data indicates bulls now have a renewed focus, with a rebound coming into play.
• LINK could ricochet at $5.73, making a 40% bounce to $8.06
• A decisive three-day candlestick close below $5.73 could invalidate the bullish thesis.

Chainlink (LINK) price has been trading with a bearish bias since April 19, losing all the ground covered since March 11. While investors remained hopeful, the optimism was shattered when the altcoin broke below a crucial support level on May 1, solidifying the downtrend. However, the wind seems to have changed direction as on-chain data shows LINK bulls now have a renewed focus, and a possible rebound could be underway.

Also Read: Chainlink price reclaims important area as bulls attempt to take back control toward $7.50

Chainlink price could boomerang 40%

Chainlink price has fallen almost 30% since mid-April, with things getting worse after the $6.96 support level broke down on May 1. The break below provoked a sell-off among LINK holders, leading to the current price of $6.29.

Looking at the three-day chart below, however, Chainlink price has ricocheted from the $5.73 level multiple times before, making this area a crucial base for a bullish resurgence. Investors can expect a continued downtrend of around 10% to the abovementioned support level in the near term before a possible trend reversal to the $8.06 target.

LINK/USDT 3-Day Chart

LINK bulls refocus with on-chain metrics to show

Chainlink price could be readying for a rebound, considering opinions have shifted over the past few weeks. The Weighted Sentiment, which assesses the positive to negative mentions ratio, indicates pessimism among most LINK holders.

As shown above, the value increased by around 30% between May 3 and May 11, rising from -0.478 to -0.375, as shown below. This positive fluctuation could be a prefix to a positive LINK price prediction. This positive fluctuation could draw the attention of strategic investors looking for an opportune time to buy LINK.

Data from IntoTheBlock also shows that market demand for the altcoin has increased, with the aggregate order books of exchanges revealing that LINK buy-orders are now more than market supply. With this excess market demand, the Chainlink price could rise as buyers compete to fulfill orders.

On the other hand, Chainlink price faces massive overhead pressure and the bullish thesis will be invalidated if LINK decisively records a three-day candlestick close below the $5.73 support level..

On-chain metrics from IntoTheBlock's Global In/Out of the Money (GIOM) model underscores the significant hurdles in Chainlink price's way northward. For example, the $8.06 target is within the GIOM's $7.03 and $8.06 price range, where approximately 98.02 million LINK are held by roughly 71,940 addresses.

Efforts to push Chainlink price above this level would be countered by selling pressure from investors looking to book early profits at break-even prices. The following supply pressure would be an obstacle to LINK's upward move. 

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