Chainlink price heads for low-hanging fruit of 5% gain as bulls try to overcome price cap

Chainlink (LINK) price sees bulls performing a big squeeze against bears since the rejection against $7.50 on Thursday. Later in that session bulls performed a bear trap and are dragging price action back up toward the current price cap. The squeeze is set to break higher as bears are bound to snap under pressure and will need to buy in the market in order to cover their loss. This should lead to a 5% jump in LINK price later on Friday.

Chainlink price to see positive evolution heading higher

Chainlink price is drawing a perfect squeeze on the chart since bears tried to run price action into the ground in early Thursday trading. Bulls kept their calm, bought the dip and are in the process of hitting bears where it hurts: in their trading balance. With continuous higher lows, bulls are squeezing bears out of their positions until they snap.

In terms of positioning on the chart, it makes sense that current price action resides near the red descending trend line. Expect that once bears snap under the buying pressure, they will be forced to buy as well in order to close their short positions. LINK will jump above the red descending price cap and pop toward $7.50 where a  daily close above could bring more gains over the weekend and into next week.

LINK/USD  4H-chart    

The level near $7.16 could be a hard nut to crack though as not only the red descending trendline is acting as a cap. The 55-day Simple Moving Average (SMA) is also throwing its weight in as well in favor of the bears. In case another rejection follows suit, expect to see a break below the low of Thursday and print a new low for this week. That could be seen around $6.40 near the monthly S1 support level.