$LINK has made a spectacular comeback after the market crash on Monday. From a low of $11.74, the price has rebounded 24.4% to $14.61. However, technical indicator warn that this euphoria could soon hit a ceiling.
š¹ Although the short term structure has turned bullish after breaking above $13.57, the long term trend is still weighed down by the $15 - $16.6 Supply Zone.
The sluggish OBV indicator show that buying pressure is not really explosive. Without strong money flow, an immediate break above $16.6 is unlikely.
šø Short term Pullback On the 1H chart, the RSI indicator is showing a bearish divergence with the price. This is a signal that the momentum is weakening and a correction to the local support of $14.2 is needed.
$LINK has cleared important liquidity zone from $13.6 to $15. The lack of dense liquidity magnet above makes the price tend to move sideway, accumulating in the range of $14.2 - $15.4 instead of breaking out further.
The market needs time to digest the recent increase. The $16.6 area is still an important barrier separating the recovery trend and the real Bull Run.
In your opinion, will $LINK accumulate at $14 or be strong enough to break out at $16.6 this week?
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