• Chainlink [LINK] recently surged from $6.895 but hit a confluence of key supply zone and ascending trendline that could delay further uptrend momentum.
• Bears must be cautious of the $7.27 support should bulls fail to exit their positions, especially if BTC rebounds to $29K.
• Long/short ratio favored bears while the funding rate history has been predominantly positive since 27 March, showing conflicting metrics that could undermine quality trades.
Chainlink [LINK] Price Action
Chainlink [LINK] made an impressive recovery in the past few days as it surged from $6.895 but hit a confluence of key supply zone and ascending trendline that could delay further uptrend momentum. At press time, price action hit the same supply zone but closed below the ascending trendline, which attracted bears. However, bulls must defend the $7.27 support to block bears from denting the bullish sentiment as a close below this level could sink LINK to 200 EMA ($7.056) or 50 EMA ($7.153). If bulls close above the ascending trendline and the supply zone of $7.6, LINK could appreciate to $7.876 instead.
Bitcoin [BTC] Movement
Despite the current FUD amidst heightened regulatory pressure in the United States, Bitcoin [BTC] zoomed to $29K and retreated slightly at press time. If bulls don’t exit their positions, BTC could retest the high of 29K and move upwards, pulling up LINK’s price with it as well as other altcoins in its wake.
Long/Short Ratio & Funding Rate History
The long/short ratio showed investors were bearish on LINK’s asset in short/medium term while funding rate history had been predominantly positive since 27 March – showing conflicting metrics that could undermine quality trades for investors who are looking for entry or exit points into or out of LINK’s market respectively.
RSI & Accumulation/Distribution Indicator
Bulls still had leverage over bears according to RSI’s value at 59 at press time while accumulation/distribution indicator was almost pivoting to upside despite retreating – evidence that bulls weren’t exiting market yet but rather accumulating more coins instead..
Conclusion
. Bullish sentiment is still around despite stiff resistance near $7.6 due to confluence of supply zone and ascending trendline; however investor must take note of conflicting metrics between long/short ratio favoring bearish outlook and funding rate history showing bullish sentiment before deciding on any trading decisions regarding Chainlink [LINK].
