- Chainlink price rallied 9% over the last twelve hours and is currently eyeing for the sweep of $7.49.
- Due to the multiple equal high formations at $7.49, this level is likely to be the next target for market makers.
- Failure to flip the $7.49 hurdle into a support floor could trigger a crash to sweep the equal lows formed at $5.27.
Chainlink price shows an interesting setup with liquidity resting on both ends. This makes it hard to discern the next move, but under some conditions, the volatility seen on LINK can be taken advantage of.
Chainlink price at crossroads
Chainlink price created a massive range, extending from $5.27 to $9.32 as it crashed 43% between May 10 and May 12. Subsequently, LINK retested the range low at $5.27, creating equal lows and leaving a ton of liquidity resting below it as it rallied 42% in the following two weeks or so.
Since then, Chainlink price created a smaller range, extending from $5.27 to $7.49. Interestingly, the range high was retested not twice but thrice over the next few weeks, leaving a lot of buy-stop liquidity above it.
This particular situation for Chainlink price shows that there is liquidity resting below $5.27 and $7.49, making both these levels highly sought-after. However, due to the FOMC meeting, altcoins rallied quite a bit and are currently trying to discern their next move.
A reversal of the recent and explosive move seems likely, but for LINK, such a development could come after a brief sweep of the $7.49 hurdle. This liquidity run could extend into a run-up if buyers manage to flip the said level into a support floor.
Such a development could see aim to fill the four-hour fair value gap, aka price inefficiency, at $7.99.
LINK/USDT 4-hour chart
On the other hand, investors should be cautious of a premature reversal of the FOMC rally. This development could send Chainlink price back to retest the 50% retracement level of the smaller range at $6.38.
In some cases, a downside move to collect the liquidity resting below equal lows at $5.27 might be possible. As long as LINK recovers above $5.27, this seemingly bearish move could be a sign that a major uptrend could be brewing for the oracle token.
However, if the $5.27 barrier is flipped into a resistance barrier, things could get ugly for Chainlink price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.