Chainlink [LINK] at Crucial Supply Zone: Can Bulls Break Above?

• Chainlink [LINK] has been in a consolidation phase after reaching a crucial supply (red) and demand (green) zone.
• The supply zone above $7.5 has proven to be a challenge for bulls, but LINK’s open interest (OI) rate has increased and short-positions have been liquidated.
• Bulls must break through the supply zone for LINK to target the $8 level, while bears should watch out for any drops in OI.

Chainlink [LINK] Consolidates Around Key Levels

Chainlink [LINK] has been oscillating between critical levels of supply (red) and demand (green). So far, the sell pressure zone above $7.5 is proving difficult to break past for bulls. However, LINK’s open interest (OI) rate has increased significantly, which could indicate an upcoming upswing. If so, bears should be aware of any drops in OI that may influence market momentum.

Bulls Face Uphill Battle at Sell Pressure Zone

On the 12-hour chart, Link was bullish as seen by its Relative Strength Index (RSI). Furthermore, On Balance Volume (OBV) had risen steadily throughout this period before taking a slight downturn at press time. Despite this positive sentiment from technical indicators, LINK is still facing resistance at the crucial sell pressure area between $7.520 and $7.813 on both 12-hour and three-hour charts alike. As such, bulls will need to clear this hurdle before targeting higher prices like the pre-FTX level of $9 or even just $8 value per coin firstly .

Open Interest Signals Bullish Momentum

According to Coinglass data, OPEN INTEREST rates have surged over 17 February – indicating strong demand for the altcoin in futures markets – further strengthening its bullish outlooks at press time. What’s more is that close to over $550K worth of shorts were liquidated in 24 hours alone – providing more fuel to an uptrend rally if successfully broken through that sell pressure zone mentioned earlier.. However, it’s worth noting that nearly$100k worth of long positions were also rekt indicating caution should still be exercised when trading.

Breaking Through Supply Zone Critical For Further Gains

A session close and confirmation above the supply zone would provide a clear view for bulls to aim towards their desired targets including potentially reclaiming its all time high price point of around $20 again one day with enough positive market sentiment behind it? Such an upswing would invalidate current bearish biases though so investors must pay attention closely here too .

Conclusion

All things considered though , Chainlink [LINK]’s recent open interest surge shows promising signs of bullishness yet it needs to break through that sell pressure area above 7 5usd first before any further gains can realistically be achieved . Bears should watch out for any drops in OI too , however , as these could diminish potential uptrends going forward .

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