Does the phrase “bull run continues” ring true for Chainlink? Despite a minor pullback at the $11.5 resistance level, the answer appears to be yes. The cryptocurrency has seen a robust upward trend, driven by the power of its buyers. This comes on the heels of an impressive 53% surge over the past week, breaking through a longstanding resistance at the $10 price level.
A Closer Look at Chainlink’s Bull Run
On October 26, AMBCrypto’s analysis pointed to a significant bull run. However, it also cautioned buyers about potential FOMO (Fear of Missing Out) due to the resistance level lying between $11 and $12 on higher timeframes. Despite the pullback at the aforementioned resistance level, both price action and on-chart indicators suggest that the bullish uptrend is set to continue.
Buyer Activity Remains High
The sustained buying pressure was clearly visible on the Relative Strength Index (RSI), which entered the overbought zone on October 21 and has stayed there since. This indicates the powerful buying force behind Chainlink’s bull run. The Chaikin Money Flow (CMF), too, remained positive at +0.11, suggesting a consistent inflow of capital for Chainlink. This implies that investors are willing to bid higher on Chainlink in the spot market.
The pullback at $11.5 may simply be a minor correction before the uptrend resumes. However, if sellers manage to push the retracement down to the $10 support level, buyers will need to defend this price point before the upward movement can continue.
Caution Advised for Short-Term Demand Dip
Coinalyze data revealed that funding rates have stayed positive, indicating that more speculators are interested in buying Chainlink than selling it in the futures market. However, a decline in demand on the four-hour timeframe was observed on the spot CVD, likely due to short-term holders taking profits. Thus, long-term holders may want to wait for a drop to the $10 support level, as it could present a better long opportunity for new buyers.
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