After the recent price slump in the LINK price, analysts wonder Can Chainlink bounce back from the recent price drop as we are reading more in the latest LINK news.
LINK is up by 10% in the past two days and is now trying to make a comeback after the price took a 23% drop. LINK suffered a steep correction which seems to have been held by the 23.6% Fib retracement level but then it was able to bounce off the support barrier where a massive supply Is waiting ahead which could prevent it from advanced further. The increase in selling pressure behind the decentralized oracles token could drop even further.
Chainlink is trying to recover from a steep correction as the data shows that the huge supply wall ahead will bring more problems for the bulls. After reaching the all-time high of $9 back in July, LINK took a 23% nosedive and the bearish impulse seems to have been triggered by whales that took some advantage of the price action. LINK then dropped to a low of $6.9 but this level could not turn out to be strong enough to bring the price to $7.4.
From a technical perspective, it seems that the 23% fib retracement level held the token from going down further while the TD Sequential indicator presented by a buying signal on the 12-hour chart, it could have been confirmed by the recent upward pressure. The bullish formation formed as a red nine candlestick while the TD setup estimated that Chainlink will rise to four 12-hour candlesticks with a huge supply barrier ahead which could reject more price actions.
Looking at the IntoTheBlock model, there are more than 2000 addresses that purchased more than 8 million LINK between $7.5 and $7.7.The crucial supply could have the potential to hold it if an upswing is to happen. Holders within the price range will try and break even in long positions. Analysts still wonder can Chainlink bounce back since the circumstances can bring sell-pressure that will push the price below the 23% Fib retracement level.
The IOMAP cohorts show that about 13,000 addresses purchased more than 21 million LINK while a strong supply barrier could have the ability to hold a link to rebound higher. The sidelined investors are trying to get back to the market but they should watch out the holder distribution chart.
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