Chainlink price reclaims important area as bulls attempt to take back control toward $7.50

Chainlink (LINK) price action offers a clear trading plan for Thursday after bulls already made a nice recovery in the ASIA PAC session, just shy of 5%. With a close of the candle above the red descending trendline, it appears that bulls are back in the game and might go for this higher continuation. With the fade currently underway, the question is if they can withstand the selling pressure before jumping up another 5% and breaking above $7.50.

Chainlink price action to question whether bulls are strong enough to withstand downward pressure

Chainlink price has revealed that bulls were interested again in a firm knee-jerk reaction in early trading on Thursday. In the process, bulls stopped out bears that were hiding their stop losses above the 200-day Simple Moving Average and above the red descending trendline that comes in near $7.08 this Thursday. With these two crucial nearby caps being broken down, bulls can go for the kill here and squeeze out an exponential amount of bears with price action primed to pop above $7.50 as early as the US trading session this Thursday. 

LINK bulls hold the key here as if they refrain from selling under the current pressure of the fade. Automatically, price action will advance higher again. With each tick higher, more and more bears will start to unwind their short positions, which means buying in the market. The demand side will see such a big pickup in volume that LINK will quickly rally up to $7.50, and a break higher might deliver a bullish signal that starts a longer-term uptrend.

    

LINK/USD  4H-chart    

The above scenario depends on bulls withstanding the selling pressure of the current fade. If they do not stick to their guns on this, and start selling themselves, expect this trade to fall the other way. The offer side will start to explode in volume with more selling than buying, which could cause price action to slide below $6.80 toward $6.70 in the near term.