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Chainlink’s (LINK) massive bullish rally has found the $20 price level a tough hurdle to surpass. Our earlier coverage of LINK’s price action highlighted $20 as a potential take-profit level for buyers after breaking the $16 resistance level.
With profit taking activities currently happening at the $20 price level, this has afforded bears the opportunity to sell LINK for short term gains. Here’s how you can trade the short term retracement.
What’s Happening in the Chainlink Ecosystem?
“Everything we’ve been working towards for the last 7 years has been leading up to tokenization,” said Johann Eid, Chainlink’s chief business officer.
Chainlink’s work on tokenization is targeted toward mass adoption of blockchain technology across the world. By granting financial institutions, startups, and developers worldwide access to real-world data, off-chain computation, and secure cross-chain interoperability across any blockchain, Chainlink has facilitated transactions totaling over $10 trillion in value.
Chainlink powers applications and markets for banking, DeFi, global trade, gaming, and other major sectors.
Bearish Crossover Signals Short Opportunity
The Moving Average Convergence Divergence (MACD) posted a bearish crossover with red histogram bars below zero in the past 24 hours. This indicator on the four-hour timeframe hinted at a shorting opportunity in the near-term.
Intraday traders can take advantage by shorting LINK from $19 with a 13% target at the closest support level of $16.5. Furthermore, the Relative Strength Index (RSI) highlighted the increasing selling pressure, as it dipped below the 50 mark.
This hinted at the willingness of sellers to short LINK, if the bearish retracement on the lower timeframe is extended.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.