- Chainlink price rallied 9% over the last twelve hours and is currently eyeing for the sweep of $7.49.
- Due to the multiple equal high formations at $7.49, this level is likely to be the next target for market makers.
- Failure to flip the $7.49 hurdle into a support floor could trigger a crash to sweep the equal lows formed at $5.27.
Chainlink price shows an interesting setup with liquidity resting on both ends. This makes it hard to discern the next move, but under some conditions, the volatility seen on LINK can be taken advantage of.
Chainlink price at crossroads
Chainlink price created a massive range, extending from $5.27 to $9.32 as it crashed 43% between May 10 and May 12. Subsequently, LINK retested the range low at $5.27, creating equal lows and leaving a ton of liquidity resting below it as it rallied 42% in the following two weeks or so.
Since then, Chainlink price created a smaller range, extending from $5.27 to $7.49. Interestingly, the range high was retested not twice but thrice over the next few weeks, leaving a lot of buy-stop liquidity above it.
This particular situation for Chainlink price shows that there is liquidity resting below $5.27 and $7.49, making both these levels highly sought-after. However, due to the FOMC meeting, altcoins rallied quite a bit and are currently trying to discern their next move.
A reversal of the recent and explosive move seems likely, but for LINK, such a development could come after a brief sweep of the $7.49 hurdle. This liquidity run could extend into a run-up if buyers manage to flip the said level into a support floor.
Such a development could see aim to fill the four-hour fair value gap, aka price inefficiency, at $7.99.
LINK/USDT 4-hour chart
On the other hand, investors should be cautious of a premature reversal of the FOMC rally. This development could send Chainlink price back to retest the 50% retracement level of the smaller range at $6.38.
In some cases, a downside move to collect the liquidity resting below equal lows at $5.27 might be possible. As long as LINK recovers above $5.27, this seemingly bearish move could be a sign that a major uptrend could be brewing for the oracle token.
However, if the $5.27 barrier is flipped into a resistance barrier, things could get ugly for Chainlink price.
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.
Follow us on Telegram
Stay updated of all the news
Coinbase to list Arbitrum with experimental label, warns users to send ARB only over Ethereum network
In a March 22 announcement, Coinbase revealed intentions to support Arbitrum’s upcoming native token, ARB, by listing it for trading on the largest cryptocurrency exchange in the United States. The disclosure was bountiful, featuring several other details for Arbitrum users.
TRON price crashes 12% as SEC charged founder Justin Sun for violating securities laws
TRON price plummeted on March 22 after the cryptocurrency became the new target of the ongoing regulatory crackdown in the United States. The Security and Exchange Commission (SEC) is now looking into Tron founder Justin Sun’s company and related entities of the altcoin’s ecosystem.
ApeCoin price at crossroads, looks to retest February highs amid the alt season but there's a catch
ApeCoin price is at crossroads after trading within a symmetrical triangle on the one-day chart. The altcoin is in a neutral formation reliant on the impending breakout that will determine the direction of the next move. The pattern contains at least two lower highs and two higher lows.
Dogecoin Price Forecast: DOGE coils up for an upswing as alt season clocks in
Dogecoin price has heeded the invite to the alt season to trade with a bullish inclination and record more gains for investors. Despite overhead pressure due to multiple supplier congestion zones, DOGE bulls have put the right foot forward and now the meme coin is preparing for another northbound move.
Weekly Recap: Bank runs, stablecoin drama, Voyager bankruptcy hearing, threat to DOX Shiba Inu founder
US bank runs sent shockwaves through market participants, traders turned to Bitcoin and the “safe haven” narrative made a comeback. Binance’s $1 billion acquisition of bankrupt crypto lender Voyager is back on track with a ruling from a New York bankruptcy judge.