Chainlink price at cross roads after a 20% climb

Chainlink (LINK) price is trading with a bullish bias, boasting a successful streak of higher highs and higher lows over the last eight days. The token is now at crossroads as it faces an area defined by aggressive selling.

Also Read: Chainlink could face increased selling pressure as $100 million worth of LINK tokens hit exchanges

Chainlink price, make or break

Chainlink price is facing a make-or-break moment after a rejection from the supply zone at $7.103.It has climbed 20% on the back of the cross-chain interoperability protocol (CCIP), a single interface that enables entrepreneurs in the Web3 and dApp spaces to solve problems. Chainlink executive Sergey Nazarov recently touted the concept, presenting the LINK ecosystem and its role in the future of capital markets. 

Technical indicators say the uptrend could continue with the Awesome Oscillator crossing into the positive zone and the Relative Strength Index (RSI) maintaining an overall upward trajectory.

Increased buying pressure could see Chainlink price venture into the supply zone at $7.103. Confirmation for an uptrend, at least for the short term, would occur upon a break and close above the mean threshold (midline) or this order block at $7.361.

In a highly bullish case, the uptrend could send Chainlink price into a second order block above the $7.637 level, and potentially above the $8.000 psychological level.

LINK/USDT 1-day chart

On-chain metric: GIOM

Data from blockchain analytics platform IntoTheBlock for the Global In/Out of the Money (GIOM) metric shows that Chainlink price has more robust support downward. With this, any efforts to send LINK down would be countered by buying pressure from 33,520 addresses that bought approximately 282.74 million LINK tokens at an average price of $6.75. 

LINK GIOM

Further, the data shows that at the current price, 73.94% of LINK holders are sitting on unrealized profit (in the money), while only 18.36% are sitting on unrealized losses (out of the money). With more in the profit zone, the amount of selling pressure on the token remains low provided the bullish prospects remain, with LINK holders looking to get the most from the current positive outlook. 

On the other hand, a rejection from the supply zone at $7.103 could see Chainlink price pull back, breaching the $6.609 support before a dip into the demand zone at $6.401. This would be the likely turnaround point for LINK because of aggressive buying. However, a solid move below its mean threshold at $6.245 would confirm the continuation of the downtrend, likely shattering the $6.000 psychological level to test the $5.808 swing low.