Chainlink price continues to fall out of bed, but dropping below $6 might even be good for LINK recovery

Chainlink (LINK) price is acting a bit like an unstable stock at the moment with wild, violent swings and a big pickup in volatility moving in either direction. Bulls wanting to enter the price action must know that a quick 5% higher or lower swing could be just around the corner. With the drop in liquidity, expect these nervous jumps to continue until bulls finally enter to stabilize price action.

Chainlink price is a no-go altcoin for the moment

Chainlink price action should  scare bulls away for the moment as intraday or even intrasession swings of over 5% occur. The reason for these quick and sharp moves comes from worn-down liquidation as the trading volume has been cut in half. The pickup in volatility makes it very hard and not for faint-hearted traders to be part of this price action. 

LINK will see bulls awaiting another leg lower and lure them in when it is offered at a nice discount. That level is between $6 and $5.70, which is still over 10% lower from current trading. This means that bears still have some room to push Chainlink's price down. The idea fits with the narrative that the Relative Strength Index (RSI) tells it as it is on the low end but not yet in the oversold area. 

    

LINK/USD  4H-chart    

With less volume and big jumps at hand, it would only take a small spark to trigger a big move higher that turns into a breakout trade. Although $7 is quite far off, a breakout at that level would see substantial inflow from investors and quickly see it sparking another leg higher to $7.50. With bears being squeezed out of their short positions quite quickly, bulls could see a nice uptrend starting here and heading into the summer.