- Chainlink price has been producing higher lows since June.
- The Volume Profile Indicator shows bears have regained control of the higher time frames.
- Invalidation of the bearish thesis is a breach above $10, which could trigger an additional rally towards $12.
Chainlink price has been finding support at higher levels since June. Still, the technicals show that the bears are still in control and will be aiming for liquidity levels below in the coming days.
Chainlink price could sweep the lows.
Chainlink price is showing mixed signals as the digital asset has been notoriously challenging to trade during September. The false breakouts and rejections near the $8 highs have been repetitive throughout the last few weeks. Nonetheless, the bulls have been stepping in at each low, highlighting an ascending trend line that has been established since June.
Chainlink price currently trades at $7.81. Upon the most recent rejection at $8.30 in September, an influx of volume poured into the market. On the 3-day chart, the volume completes a classic ramping pattern, suggesting the bears are in full control.
Additionally, the bulls have not produced equal or more volume during the current retaliation. The lack of bullish involvement on the Volume Profile justifies the idea that a sweep-the-lows event is due for the LINK price. The $5.70 level is a probable target as multiple unfinished auctions lie in the vicinity.
LINK/USDT 3-Day Chart
The bulls could still produce another high, so traders must be aware of the opposite scenario. The fourth retest of the ascending trend line will likely catalyze the next volatile movement. The bearish thesis will be void if the bulls can produce a breach of the thrust candle at $10. The candle was the catalyst that brought the Chainlink price into the current range. A 60% rally could occur towards previously broken support at $15 if the LINK price invalidates the bearish thesis.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
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.