- The demand for LINK at $6.77 was not enough to avoid a sharp drop in price.
- LINK formed a negative divergence, and a downward breakout could be on the horizon.
- The CMF needs to form a higher low, alongside a lower high price action to offer a buying opportunity.
Despite its prolonged struggles in the second quarter, Chainlink’s (LINK) performance in July has been relatively impressive. According to CoinMarketCap, LINK crossed $7 on July 14, thanks to a 10.17% 7-day price increase.
However, the token’s momentum has changed. As a result, LINK’s value fell to $6.68. One reason LINK decreased this much was the sharp rejection it faced at $7.17. On the LINK/USD 4-hour time frame, buyers made attempts to help the price recover.
Distribution Overtakes Accumulation
But the demand was not enough to outpace the numerous sell orders. Specifically, at $6.77, demand appeared again on 16 July. Unfortunately for bulls, the demand was not enough to override the resistance at $6.81 as LINK fell sharply to $6.66.
Furthermore, indications from the On-Balance-Volume (OBV) showed that LINK was going through a distribution phase. Also, LINK had formed a negative div…
The post Chainlink (LINK) Falls Into Bear Trap, May Continue Evading $7 appeared first on Coin Edition.
The post Chainlink (LINK) Falls Into Bear Trap, May Continue Evading $7 appeared first on Coin Edition.