When deciding to go long on Chainlink (LINK), this is something buyers should think about

When deciding to go long on Chainlink (LINK), this is something buyers should think about.

Buyers of Chainlink sparked a month-long rising wedge upswing until mid-August in a losing effort to hasten the prior bullish run. In spite of this, bears have gained renewed selling vigor close to the $9.2 ceiling, a storyline that has maintained over the last three months.

Meanwhile, LINK was having trouble maintaining stability above the daily Exponential Moving Average ribbons. Given current conditions, we could see a precipitous drop in the near future, followed by price drops that can be used to buy recoveries. While this article was being written, a share of LINK was trading at $6.866, down 5.6% from the day before.

Following a decline to near 2-year lows on June 13, chainlink purchasers had recovered to the $8 level. But the upswing that followed the expected disintegration of the rising wedge was short-lived. As a result, the price action dived below the Exponential Moving Average ribbons, signaling a selling dominance. Conversely, the support around $6.7 presents a temporary barrier for sellers and could result in a period of sluggish movement if reversals occur.

It’s possible that in such situations, prices will congregate near the POC (Point of Control) before making a dramatic reversal. If the market closes below $6.7, it might pave the way for LINK to test $6.3, which would have buyers fighting to maintain their advantage. However, if the Exponential Moving Average ribbons decisively cross in a bearish direction, it may create favorable conditions for bears.


At the time of this writing, the Relative Strength Index (RSI) has dropped below 30. After moving sideways, the indicator needs to go back above the neutral line in order to signal a long-term buying advantage.

In addition, the CMF (Chaikin Money Flow) mirrored the RSI in showing weak purchasing power. If prices remain below zero for an extended period of time, buying activity may sputter. To add insult to injury, the negative DI kept northward motions going strong. To counteract this, buyers should hold off on executing longs until a bullish cross from the +DI becomes more likely.

Observation and Conclusion

Chainlink’s LINK is in a precarious position due to the bearish flag pattern, poor indicator performance, and low trading volumes. A group of purchasers should band together to shield the $6.7 million figure. All goals would remain the same. A sluggish period could be seen at the Point of Control in the event of a bearish invalidation. Finally, investors should look at market trends as a whole to see where they may make money.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.