• 12. April 2024

LINK Bulls Face Tough Resistance, Can Bulls Overcome?

• Chainlink [LINK] made an impressive recovery in the past few days, surging from $6.895 but hitting a confluence of key supply zone and ascending trendline.
• If bulls don’t exit their positions, LINK could appreciate to $7.876, but must defend the $7.27 support to block bears from denting the bullish sentiment.
• Despite the bullish price 4-hour chart at press time, the long/short ratio showed investors were bearish on the asset in the short/medium term while funding rate history has been predominantly positive since 27 March.

Chainlink [LINK] Price Overview

Chainlink [LINK] made an impressive recovery in the past few days, surging from $6.895 but hitting a confluence of key supply zone and ascending trendline that could delay further uptrend momentum. However, Bitcoin [BTC] zoomed to $29K and retreated slightly despite current FUD amidst heightened regulatory pressure in US which could pull altcoins including LINK if bulls don’t exit their positions.

Price Action Analysis

At press time, LINK’s price action hit a supply zone of $7.6 but closed below an ascending trendline which attracted bears; they must be cautious of a support at $7.27 should bulls fail to exit their positions; if bulls close above both levels then LINK could appreciate to $7.876 while defending any dips at either 200 EMA ($7.056) or 50 EMA ($7.153). A retest of recent low at $6.895 is possible if bears clear those EMAs‘ hurdles as well as breach a key support at $7.27 due to conflicting metrics (long/short ratio favored bears).

Funding Rate History & Long/Short Ratios

The long/short ratio showed investors were bearish on LINK in short/medium term despite its bullish price 4-hour chart; hence traders need caution when entering trades as such conflicting metrics can undermine quality trades – however funding rate history has been predominantly positive since 27 March showing bullish sentiment in derivatives market which could help push LINK’s prices up should BTC rebound towards its ATH at 29K or above again soon .

Conclusion

Investors need caution when trading LINK amid conflicting metrics where long/short ratio favored bears and funding rate history showed bullish sentiment in derivatives market – price action analysis shows potential resistance at both supply zone & ascending trendline near 7$ with key support near 7$ too so traders must watch these levels carefully for any signal before entering trades; if BTC rebounds towards 29K again soon it might also give some upside push to LINK prices so keep eyes open for any developments here!